When is the Belocal Collections Fee due?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Lead Generation Fee (2) (7) (8) | Varies based on the tier of service Currently, $200 per month for Tier 1, $375 per month for Tier 2, and $550 per month for Tier 3 | Monthly, as incurred | If you enroll in our lead generation program and we or our affiliate provide you with lead generation services, we may require you to pay a lead generation fee in connection with such services. Our Lead Generation Specialist can gather leads through various methods including, but not limited to, pulling local business data, placing ads for inbound leads, list scrubbing, and other digital lead collections. Your Commission payment is determined, in part, by your use of this service. See Note 2. The Lead Generation Fee is updated from time to time in the Franchise Brand Standards Manual. See Note 7 regarding our ability to change certain flat fees, including the Lead Generation fees. See Note 8 regarding a cap on the total increase to this fee during the term of the Franchise Agreement. |
| Late Commission Fee (7) (8) | Currently, $250 | As incurred | We are not required to approve Commission payments outside of the regular Commission schedule. If we do, we have the right to charge this fee. See Note 7 regarding our ability to change certain flat fees, including the Late Commission fee. See Note 8 regarding a cap on the total increase to this fee during the term of the Franchise Agreement. |
| Returnable Commission | The amount of any overpayment we make to you | On Demand | 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. |
| Fines | Up to $500 for the first instance; Up to $1,000 for a second or subsequent instance | On Demand | Due only if you fail to obtain our prior approval for advertising, offer unauthorized products or services, or fail to comply with the System operating standards or the Franchise Brand Standards Manual. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
Based on the 2025 Belocal Franchise Disclosure Document, the document does not specify a "Collections Fee." However, there are several fees outlined in Item 6, including the Lead Generation Fee, Late Commission Fee, Returnable Commission, and Fines. The Lead Generation Fee, which varies based on the tier of service, is due monthly as incurred. Currently, it is $200 per month for Tier 1, $375 per month for Tier 2, and $550 per month for Tier 3. The Late Commission Fee, currently $250, is due as incurred. The Returnable Commission, which is the amount of any overpayment Belocal makes to the franchisee, is due on demand. Fines, which range up to $500 for the first instance and up to $1,000 for a second or subsequent instance, are also due on demand.
For a prospective Belocal franchisee, understanding the due dates for these various fees is crucial for managing their finances and avoiding penalties. The Lead Generation Fee, if applicable, will be a recurring monthly expense, while the Late Commission Fee and Fines are contingent on specific circumstances. The Returnable Commission is an important consideration to ensure accurate financial reconciliation with Belocal.
Since a specific "Collections Fee" is not mentioned, it is advisable for potential franchisees to seek clarification from Belocal regarding any other fees related to collections or outstanding payments. Understanding the full scope of fees and their respective due dates will enable franchisees to better plan their cash flow and maintain a healthy financial relationship with the franchisor.