When is the Belocal initial franchise fee due?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of | When Due | To Whom |
|---|---|---|---|---|
| Low – High | Payment | Payment Is to Be Made | ||
| Initial Franchise Fee (1) | $735 | As Arranged | Execution of Franchise Agreement | Us |
Notes:
- (1) The initial franchise fee for a Franchised Business is $735. However, we are waiving the initial franchise fee for franchises offered or entered into on or after the Issuance Date of this disclosure document that facilitate the publishing of a new Publication, unless this disclosure document is amended to reflect otherwise. We reserve the right to charge the initial franchise fee of $735 if the franchise is for the facilitation of a publication that was formerly a Bridge Publication.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 31–33)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges around $735, is due upon the execution of the Franchise Agreement. However, Belocal is waiving the initial franchise fee for franchises offered or entered into on or after the Issuance Date of the FDD that facilitate the publishing of a new Publication, unless the disclosure document is amended to reflect otherwise. Belocal reserves the right to charge the initial franchise fee of $735 if the franchise is for the facilitation of a publication that was formerly a Bridge Publication.
This means that a prospective Belocal franchisee will typically need to pay the initial franchise fee when they sign the agreement to become a franchisee, unless they meet the waiver conditions. It is important to note that this fee is paid to Belocal itself. The FDD specifies that Belocal does not offer financing for the initial franchise fee or any portion of the initial investment, and unless otherwise stated, the amounts described are not refundable.
Prospective franchisees should confirm with Belocal whether they qualify for the waiver of the initial franchise fee, especially if their franchise will involve publishing a new publication. They should also clarify whether the publication they intend to facilitate qualifies as a "new Publication" rather than a "Bridge Publication," as the latter may not be eligible for the waiver. Understanding these conditions is crucial for accurately estimating the initial investment required to start a Belocal franchise.