factual
Does Belocal have to demand the Transfer Damages fee before it is due?
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, the Transfer Damages fee is due only after Belocal demands it. Specifically, the fee is due within 15 days of Belocal's demand.
The Transfer Damages fee is incurred if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement. This fee is the greater of 15% of the transfer price or $25,000.
This means a prospective Belocal franchisee needs to understand the conditions under which a transfer might occur and what constitutes non-compliance with the transfer terms. Franchisees should carefully review the Franchise Agreement to fully understand these obligations and potential costs.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.