FranchiseVerdict
BELOCAL logo
FV-00276·MODERATEExcellent81

Belocal

Business Services - OtherFranchising since 2017Website
Investment
$2K – $12K
0th pct Other
Avg revenue
57th pct Other
Royalty
15.0%
48th pct Other
Units
157
84th pct Other
SBA default

Bottom line

  • Total investment $2K – $12K including a $735 franchise fee, 15.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100.
  • System contracting at -12.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
N2 Franchising, Inc.
Incorporated in
Delaware
HQ
9151 Currency Street, Irving, Texas 75063
Auditor
A+G LLP
Audited financials
Franchisor revenue
$77.5M
vs $82.5M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one BELOCAL unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $2K–$12K
Working capital
$
FDD reports $600–$1K

Unlevered ROIC · per unit

486%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$38K
EBITDA margin
5.0%
Total invested
$8K
Payback
2 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

BELOCAL franchisees publish hyper-local community newspapers/publications and generate revenue through print and digital advertising sales. Day-to-day operations involve community engagement, content curation, ad sales outreach, and publication production while remitting 15% of advertising value as royalties to the franchisor.

CEO
JP Hamel
Founded
2016
FDD year
2025
States available
34

Item 7 · what it costs

The Vitals

Total investment
$2K – $12K
All-in to open one unit
Liquid capital
$600 – $1K
Cash you must have on hand
Franchise fee
$735
Royalty
15.0%
Monthly Commission based · typical 6–8%
Ad fund
n/d
Total fee load
15.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
157
Opened
103
Last reporting year
Closed
89
Turnover rate
56.7%
Company-owned
13
Corporate units in the system
% franchised
92%
vs corporate-owned
Net growth (yr3)
+1.5%
Net unit change last year
3-yr CAGR
-12.3%
Compounded over last 3 years
2023
135+5
Franchised units
2024
133
Franchised units
2025
154
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 28 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 28 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

BELOCAL presents meaningful concerns: minimal growth trajectory, absent financial performance data, regulatory compliance history, unprotected territories, and high advertising-based royalties with unclear valuation mechanisms.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORStagnant unit growth (1.5% YoY) suggests market saturation or franchisee dissatisfaction
  2. 02MINORNo financial disclosure (Item 19) prevents assessment of actual franchisee profitability and ROI
  3. 03MINORTwo regulatory compliance violations in California and Washington indicate disclosure/registration failures to prospective franchisees
  4. 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
  5. 05MINORHigh royalty rate (15% of advertising value) is contingent on subjective valuation and creates revenue uncertainty
  6. 06MINORVery low franchise fee ($735) may indicate weak brand support or insufficient franchisor resources

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Non-exclusive geographic area
Protected territory
No
Initial term
3 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
2
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Texas

Item 11

Training & Operations

Classroom training
12 hrs
On-the-job training
17 hrs
POS system
Publisher Hero CRM
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

100 numbers

Locked
(240) 832-••••
MD
(770) 331-••••
GA
(910) 363-••••
NC

One-time purchase · CSV download · Validation questions included

FDD download

BELOCAL · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above