Is Belocal allowed to charge a fee to cover credit card transaction fees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| revenues). We or our affiliate will collect | |||
| any such payments, and we have the right | |||
| to charge a fee to cover the credit card | |||
| transaction fees associated with such | |||
| payments as well as a reasonable fee for | |||
| our or our affiliate's involvement with the | |||
| administration of this payment channel | |||
| ("Administrative Credit Card Fee"). | |||
| The current Administrative Credit Card | |||
| Fee is equal to 3% of any amount paid by a | |||
| third-party using our designated credit card | |||
| processing platform to pay fees or other | |||
| amounts owed in connection with the | |||
| Publication or relating to the Franchised | |||
| Business, but we may change the amount | |||
| of the Administrative Credit Card Fee upon | |||
| 90 days' notice to you. | |||
| Currently, we only charge the | |||
| Administrative Credit Card Fee in | |||
| connection with event revenues (amounts | |||
| paid by event sponsors or others connected | |||
| with local events you have organized); but, | |||
| we reserve the right, upon 90 days' notice | |||
| to you, to charge an Administrative Credit | |||
| Card Fee in connection with any other | |||
| third-party payments of fees or other | |||
| amounts owed in connection with the | |||
| Publication or relating to the Franchised | |||
| Business made using our designated credit | |||
| card processing platform. | |||
| We may increase the amount of the | |||
| Administrative Credit Card Fee from time | |||
| to time, including due to increases in | |||
| vendor pricing, up to a maximum of 5% of | |||
| the total amount paid by any third-party via | |||
| credit card. | |||
| We may make mandatory a third-party's | |||
| use of our designated credit card | |||
| processing platform for payment of any | |||
| fees or other amounts owed in connection | |||
| with the Publication or relating to the | |||
| Franchised Business. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal or its affiliate has the right to charge a fee to cover credit card transaction fees associated with third-party payments made via their designated credit card processing platform. This fee is termed the "Administrative Credit Card Fee."
The Administrative Credit Card Fee is currently 3% of the amount paid by a third party using Belocal's designated credit card processing platform for fees or other amounts owed related to the Publication or the Franchised Business. While currently applied only to event revenues (amounts paid by event sponsors or others connected with local events organized by the franchisee), Belocal reserves the right to extend this fee to any other third-party payments of fees or other amounts owed. Belocal will provide franchisees with 90 days' notice before implementing such a change.
Belocal also retains the right to increase the Administrative Credit Card Fee, including due to increases in vendor pricing, up to a maximum of 5% of the total amount paid by any third party via credit card. Belocal may also mandate the use of its designated credit card processing platform for third-party payments related to the Publication or the Franchised Business. This means that franchisees could see a portion of their revenues reduced by these fees, and they must factor this into their financial planning. Franchisees should also stay informed about any changes to the fee structure by paying attention to notices from Belocal.