What is considered abandonment of the Belocal Franchised Business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, abandoning the franchised business can lead to certain financial consequences. Specifically, if a franchisee abandons the Belocal business, they may be required to pay "Wind-Down Damages."
The amount of these damages is the greater of two calculations: either six months' worth of the average royalty payments from the previous 12 months before the default, or a flat fee of $2,500. This payment is due upon demand from Belocal.
This policy is in place to ensure that franchisees do not simply walk away from their obligations without properly winding down the business. It also covers Belocal's potential losses and expenses resulting from the abrupt abandonment. Prospective franchisees should carefully consider this potential cost and ensure they have a plan for managing their business to avoid such a situation.