What is the deadline for paying the Belocal Transfer Damages fee after demand?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement, they are liable for Transfer Damages. The amount of these damages is the greater of 15% of the transfer price or $25,000. The franchisee must pay this fee within 15 days of Belocal's demand for payment. This means a prospective Belocal franchisee needs to be aware of the conditions under which a transfer can occur and the potential costs involved if those conditions are not met. Failing to comply with the transfer terms can result in a significant financial obligation. Franchisees should carefully review the transfer terms in the Franchise Agreement to understand their obligations and avoid incurring these damages. This is especially important if they anticipate selling or transferring their franchise in the future.