How is 'Cash Received' defined for the purpose of calculating the Belocal Management Fee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
"Cash Received" means all revenue actually received by us or our affiliates from advertisers, recipients of the Publication, or other parties under the terms of advertising contracts or any other form of agreement or contract related to each issue of the Publication. You will not receive a Commission payment in the month or months that a Negative Commission occurs. Commission payments will be accompanied by a Commission accounting and reconciliation report that itemizes Cash Received and the other applicable fees and expenses described in this Item 6. If the Commission report reflects that you have been paid a Commission in an amount that is more than you are due, then you must return to us the amount of overpayment ("Returnable Commission").
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, "Cash Received" is defined as all revenue actually received by Belocal or its affiliates from advertisers, recipients of the Publication, or other parties under the terms of advertising contracts or any other form of agreement or contract related to each issue of the Publication. This definition is important for franchisees because the Management Fee is calculated as a percentage of this Cash Received.
The Management Fee is 45% of monthly Cash Received, plus any expenses Belocal incurs in managing the Franchised Business. This fee is only payable if Belocal must operate the franchise due to circumstances such as death, disability, or default of the franchisee. The Management Fee is in addition to other fees due to Belocal.
Additionally, the FDD specifies that franchisees will not receive a Commission payment in months where a Negative Commission occurs. Commission payments are accompanied by a Commission accounting and reconciliation report that itemizes Cash Received and other applicable fees and expenses. If a franchisee is overpaid, they must return the overpayment, referred to as a "Returnable Commission", to Belocal.