What is the minimum amount for the Belocal Transfer Damages fee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Damages | Greater of 15% of transfer price or $25,000 | Within 15 days of our demand | You will pay these transfer damages if you do not comply with the transfer terms under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Transfer Damages fee is the greater of 15% of the transfer price or $25,000. This fee is payable if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement.
In practical terms, this means that if a Belocal franchisee attempts to transfer their franchise but does not meet the franchisor's requirements for the transfer, they will be required to pay Belocal a fee. The minimum amount for this fee is $25,000, but it could be higher if 15% of the transfer price exceeds that amount.
This fee is due within 15 days of demand from Belocal. Prospective franchisees should carefully review the transfer terms in the Franchise Agreement to understand the conditions under which this fee would be assessed and to avoid incurring this potentially significant expense.