To whom are the fees and expenses in Item 6 payable for a Belocal franchise?

According to Belocal's 2025 Franchise Disclosure Document, all fees and expenses outlined in Item 6 are generally payable to Belocal. The FDD specifies that these fees are non-refundable and are collected and imposed uniformly by Belocal, unless explicitly stated otherwise. This means that franchisees should expect to remit payments for various fees, such as the Management Fee, Customer Complaint Fee, Wind-Down Damages, and Transfer Damages, directly to Belocal.

This arrangement is typical in franchising, as it allows Belocal to maintain control over its revenue streams and ensure consistent application of fee structures across all franchise locations. However, the document also notes that Belocal may increase these fees based on market conditions, the cost of providing services, and future policy changes, although there are no current plans to do so. Additionally, flat fees may be adjusted for inflation annually, using metrics like the Consumer Price Index.

It's important for prospective Belocal franchisees to understand that while most fees are payable directly to Belocal, there might be exceptions or variations depending on specific circumstances, such as cross-selling arrangements or optional services provided by affiliates. Franchisees should carefully review the fee schedule and any related agreements to fully understand their payment obligations and to whom those payments should be directed. Furthermore, franchisees should stay informed about any potential fee increases or policy changes that could affect their financial obligations to Belocal.