What payments must the Transferor make to Belocal upon execution of the Transfer Agreement?

According to Belocal's 2025 Franchise Disclosure Document, upon the execution of the Transfer Agreement, the transferor must have paid Belocal all sums owed. This includes, but is not limited to, the required transfer fee and all Returnable Commissions.

This means that a franchisee looking to transfer their Belocal franchise must settle all outstanding financial obligations with the franchisor before the transfer can be completed. These obligations specifically include the transfer fee, which is the fee required to process the transfer of the franchise to a new owner, and any "Returnable Commissions," which are overpayments of commissions that Belocal previously paid to the franchisee.

This requirement protects Belocal by ensuring that the transferring franchisee does not leave behind any unpaid debts or financial discrepancies. For a prospective franchisee, this highlights the importance of maintaining accurate financial records and resolving any commission-related issues promptly to facilitate a smooth transfer process if they decide to sell their franchise in the future.