Can Belocal collect fines by means of EFT (Electronic Funds Transfer)?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
. For each instance where Franchisee fails to obtain prior written approval for advertising or promotional plans and materials, offers unauthorized products or services, or otherwise fails to comply with the System operating standards or the Franchise Brand Standards Manual, Franchisor shall, at Franchisor's option, have the right to levy a fine in an amount up to $500 for the first instance and up to $1,000 for a second or subsequent instance. The imposition of a fine pursuant to this section shall not act as a waiver of any of Franchisor's other remedies under this Agreement. Furthermore, Franchisor has the right to collect any such fines by means of EFT. Franchisor reserves the right to charge Franchisee for Franchisor's and its affiliates' costs to respond and/or resolve a complaint related to the Franchised Business by the advertisers, clients, or other parties that Franchisee does not satisfactorily resolv
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal has the right to collect fines from franchisees via Electronic Funds Transfer (EFT). These fines can be levied if a franchisee fails to obtain prior written approval for advertising or promotional materials, offers unauthorized products or services, or does not comply with the System operating standards or the Franchise Brand Standards Manual.
The FDD specifies that Belocal can impose fines up to $500 for the first instance of non-compliance and up to $1,000 for any subsequent instances. The ability to collect these fines through EFT provides Belocal with a direct and efficient method of ensuring compliance with franchise standards.
It is important to note that the imposition of a fine does not waive Belocal's other remedies under the Franchise Agreement. Additionally, Belocal retains the right to charge franchisees for costs incurred by Belocal or its affiliates in responding to and resolving complaints related to the franchised business that the franchisee fails to resolve satisfactorily. Franchisees should be aware of these potential financial implications and ensure they adhere to all operational and brand standards to avoid such fines.