What is the amount of the Belocal Management Fee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 45% of monthly Cash Received, plus any expenses we incur in managing the Franchised Business | Monthly | Only payable in the event we must operate your franchise due to death, disability, defaults etc. The Management Fee is in addition to other fees due to us. |
| Customer Complaint Fee | Our costs and expenses associated with our response to and any resolution of a complaint | On demand | If an advertiser, client, or third party complains to us and you fail to satisfactorily remedy the complaint, you will pay us our costs and expenses associated with our response to and any resolution of the complaint. |
| Wind-Down Damages | An amount equal to the greater of (a) 6 months' worth of the average Royalty you paid for the 12 months prior to the default or (b) $2,500 | On demand | Only payable if you fail to comply with the wind-down procedures or abandon the Franchised Business. |
| Transfer Damages | Greater of 15% of transfer price or $25,000 | Within 15 days of our demand | You will pay these transfer damages if you do not comply with the transfer terms under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, a Management Fee is applicable only in specific circumstances. If Belocal has to step in to operate a franchise due to events like the franchisee's death, disability, or default, a Management Fee will be imposed.
The Management Fee is calculated as 45% of the monthly Cash Received by the franchise, in addition to any expenses Belocal incurs while managing the business. This fee is payable monthly and is in addition to any other fees already owed to Belocal under the Franchise Agreement.
This arrangement is not typical in many franchise systems, where management fees are usually associated with ongoing support or specific services provided by the franchisor. The Belocal structure is more of a contingency plan, triggered only when the franchisee is unable to manage the business themselves and Belocal has to intervene to maintain operations. Prospective franchisees should understand that while they may not typically pay this fee, it could become a significant expense if circumstances require Belocal to take over management of their franchise.