Is the Belocal Management Fee in addition to other fees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | 45% of monthly Cash Received, plus any expenses we incur in managing the Franchised Business | Monthly | Only payable in the event we must operate your franchise due to death, disability, defaults etc. The Management Fee is in addition to other fees due to us. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Management Fee is in addition to other fees. The Management Fee is 45% of monthly Cash Received, plus any expenses Belocal incurs in managing the Franchised Business. This fee is only payable if Belocal must operate the franchise due to circumstances such as death, disability, or default.
This means that if Belocal steps in to manage the franchise, the franchisee will be responsible for covering the Management Fee on top of any other applicable fees outlined in the Franchise Agreement. This could significantly impact the profitability of the franchise during the period Belocal is managing it.
Prospective franchisees should carefully consider the circumstances under which the Management Fee would be applied and factor this potential cost into their financial projections. Understanding all other fees outlined in Item 6 of the FDD is crucial to assess the overall financial obligations and potential risks associated with the Belocal franchise.