When is the early termination fee on cross-sold accounts due for Belocal franchisees?
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)
Based on the 2025 Belocal Franchise Disclosure Document, there is no mention of an early termination fee specifically related to cross-sold accounts. However, the document does outline various fees and potential damages that a franchisee might incur under different circumstances.
Item 6 details several fees, such as a Management Fee of 45% of monthly Cash Received if Belocal has to operate the franchise due to certain circumstances, a Customer Complaint Fee covering Belocal's costs to resolve complaints, Wind-Down Damages equal to six months of average Royalty or $2,500, and Transfer Damages that are the greater of 15% of the transfer price or $25,000. These fees are due either monthly, on demand, or within 15 days of demand, depending on the specific fee.
While the FDD provides information on cross-selling fees and commissions, it does not specify any fees associated with early termination related to cross-selling. A prospective franchisee should clarify with Belocal whether any such fees exist and under what conditions they would be applied.