How will Belocal franchisee fees for services be paid?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
For the Services to be performed hereunder, the Franchisee will pay N2 the applicable fees (the "Fees") listed in Exhibit A.
The Fees will be deducted from the Commissions (as defined under Franchisee's applicable Franchise Agreement) owed to the Franchisee by N2's affiliate, N2 Franchising, Inc.
Franchisee will be responsible for all sales, use, and excise taxes, and any other similar taxes, duties, and charges of any kind imposed by any federal, state, or local governmental entity on any amounts payable by Franchisee hereunder; provided, that, in no event will Franchisee pay or be responsible for any taxes imposed on, or regarding, N2's income, revenues, gross receipts, personnel, or real or personal property or other assets.
All late payments shall bear interest at the lesser of 1.5% per month or the highest rate permissible under applicable law, calculated daily and compounded monthly.
Franchisee shall also reimburse N2 for all reasonable costs incurred by N2 in collecting any late payments, including, without limitation, attorneys' fees.
In addition to all other remedies available under this Agreement or at law (which N2 does not waive by the exercise of any rights hereunder), N2 shall be entitled to suspend the provision of any Services if the Franchisee fails to pay any amounts when due hereunder and such failure continues for 7 days following written notice thereof.
N2 has the right to modify (including by increasing) any of the Fees upon 45 days' written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, franchisee fees for services will be directly deducted from the commissions that N2 Franchising, Inc., Belocal's affiliate, owes to the franchisee. This means that instead of the franchisee paying out-of-pocket for these services, Belocal will offset the fees against the revenue the franchisee has already earned through commissions.
The franchisee is responsible for all sales, use, and excise taxes, as well as any similar taxes, duties, and charges imposed by federal, state, or local governmental entities on any amounts they are required to pay. However, the franchisee is not responsible for any taxes imposed on Belocal's income, revenues, gross receipts, personnel, or real or personal property or other assets.
Belocal has the right to modify any of the fees, including increasing them, but they must provide the franchisee with 45 days' written notice before doing so. Late payments will incur interest at a rate of 1.5% per month, or the highest rate permissible under applicable law, calculated daily and compounded monthly. The franchisee will also be responsible for reimbursing Belocal for all reasonable costs incurred in collecting any late payments, including attorney's fees. Belocal can suspend the provision of any services if the franchisee fails to pay any amounts when due and this failure continues for 7 days after written notice.