What fee must a Belocal franchisee pay to the Franchisor upon application for consent to transfer?

According to Belocal's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must pay a transfer fee to Belocal upon application for consent to the transfer. This fee is equal to the then-current initial franchise fee that Belocal generally charges to new franchisees. Additionally, the franchisee is responsible for covering Belocal's reasonable attorneys' fees incurred during the transfer process.

This means that if a franchisee decides to sell their Belocal franchise to a new owner, they will need to pay a transfer fee equivalent to what a brand new franchisee would pay to start a Belocal franchise at that time. This fee, along with the obligation to cover legal costs, can represent a significant expense for the transferring franchisee. It is important to note that the initial franchise fee can change over time, so the transfer fee could be different from what the original franchisee initially paid.

This requirement is fairly standard in the franchise industry, as it allows the franchisor to recoup some of the costs associated with vetting and approving a new franchisee. It also ensures that the franchisor is compensated for the administrative work involved in transferring the franchise agreement. Prospective franchisees should consider this potential cost when evaluating the overall investment and potential return on investment of a Belocal franchise.