What costs and expenses is a Belocal franchisee responsible for if they don't comply with the data requirements in the Franchise Agreement?
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. |
| Customer Complaint Fee | Our costs and expenses associated with our response to and any resolution of a complaint | On demand | If an advertiser, client, or third party complains to us and you fail to satisfactorily remedy the complaint, you will pay us our costs and expenses associated with our response to and any resolution of the complaint. |
| 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. |
| Transfer Damages | Greater of 15% of transfer price or $25,000 | Within 15 days of our demand | You will pay these transfer damages if you do not comply with the transfer terms under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, there are several fees a franchisee may incur for non-compliance with the Franchise Agreement, though none are explicitly tied to 'data requirements'.
If Belocal has to step in and operate the franchise due to the franchisee's default, disability, or other issues, the franchisee will be responsible for a Management Fee. This fee is 45% of the monthly cash received, in addition to any expenses Belocal incurs while managing the business.
If a customer lodges a complaint and the franchisee fails to resolve it satisfactorily, Belocal may step in. In this case, the franchisee is responsible for covering Belocal's costs and expenses associated with responding to and resolving the complaint. Additionally, if a franchisee fails to comply with wind-down procedures or abandons the franchise, they will owe Wind-Down Damages. This is the greater of either six months' worth of the average royalty paid over the previous 12 months or $2,500. Finally, if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement, they will be liable for Transfer Damages, calculated as the greater of 15% of the transfer price or $25,000.