Can Belocal charge both the Management Fee and other fees simultaneously?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal can charge the Management Fee in addition to other fees. 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 like death, disability, or default.
This means that if Belocal takes over the operation of a franchise for specific reasons, the franchisee will be responsible for the Management Fee on top of any other applicable fees outlined in the Franchise Agreement. These other fees could include Customer Complaint Fees, Wind-Down Damages, or Transfer Damages, depending on the situation.
For a prospective Belocal franchisee, this highlights the importance of understanding the conditions under which Belocal might step in to manage the business and the financial implications of such an event. It's crucial to be aware that the Management Fee is an additional cost on top of other potential fees, which could significantly impact profitability during the period Belocal is managing the franchise.