What is the maximum monthly Software Fee that Belocal may charge in the future?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
(8) Each of these fees can be increased upon notice to you; however, the total increase of each fee during the term of the Franchise Agreement will not be more than 25% of the fee currently identified in this Item 6.
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
Based on the 2025 Belocal Franchise Disclosure Document, Item 6 outlines various fees a franchisee may encounter. While the document details several fees such as Management Fees, Customer Complaint Fees, Wind-Down Damages, Transfer Damages, Design Revision Fees, Adjustment Fees, Missed Deadline Fees, Late Revisions Fees and Cross-Selling Fees, it does not specify a 'Software Fee'.
However, the FDD does state that Belocal may increase fees based on market conditions, the cost of providing services, and future policy changes. Furthermore, the document specifies that the total increase of each fee during the term of the Franchise Agreement will not be more than 25% of the fee currently identified in Item 6. This indicates that while specific amounts for potential future fees are not provided, there are limitations on how much existing fees can be increased.
Therefore, a prospective Belocal franchisee should inquire with the franchisor about the potential implementation of a Software Fee, its initial amount, and how the 25% cap on fee increases would apply to it. Understanding these potential costs is crucial for accurate financial planning.