Does the initial franchise fee waiver for Belocal apply to franchises that facilitate the publishing of a new publication?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 management of a publication that was formerly a Bridge Publication.
If we were to charge a franchise fee, the fee would be non-refundable and due in a lump sum. Last year, we uniformly waived the initial franchise fee for both new publications and Bridge Publications.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the initial franchise fee of $735 is waived for franchises offered or entered into on or after the issuance date of the document, specifically for those that facilitate the publishing of a new publication. However, this waiver is subject to change if the disclosure document is amended to reflect otherwise. This waiver does not apply to franchises for the management of a publication that was formerly a Bridge Publication, in which case the initial franchise fee of $735 would be charged.
This waiver of the initial franchise fee can significantly reduce the upfront costs for new Belocal franchisees who are starting a new publication. It is important to note that Belocal retains the right to revoke this waiver through an amendment to the disclosure document. Prospective franchisees should confirm the current status of the waiver before signing the franchise agreement.
In the past year, Belocal uniformly waived the initial franchise fee for both new publications and Bridge Publications. This indicates a potential shift in Belocal's strategy, as the current policy distinguishes between new publications and Bridge Publications regarding the fee waiver. Franchisees should clarify with Belocal whether the publication they intend to facilitate qualifies as a 'new publication' under the terms of the franchise agreement to ensure they are eligible for the waiver.