Does Belocal have present plans to increase any fees?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All fees and expenses in this Item 6 are non-refundable and, unless otherwise indicated in the preceding chart, are imposed uniformly by us, collected by us, and are payable to us. Except as otherwise noted, we may increase these fees based on changes in market conditions, our cost of providing services, and future policy changes, but we have no present plans to increase any fees. We do not currently require you to participate in, nor have we created, any cooperatives.
- (7) We may adjust the amount of any flat fee (meaning a fee that is a flat dollar amount) to account for inflation. Up to one time per calendar year, we will have the right to increase each flat fee by an amount up to the yearly cost-of-living adjustment ("COLA") percentage identified by the United States Social Security Administration or similar metric of inflation we deem reliable (such as the Consumer Price Index (U.S. Average, all items) maintained by the United States Department of Labor). By way of example only, if the COLA adjustment for 2027 were 3%, then on a single occasion in 2027 we could raise each flat fee by up to 3%.
Additionally, the amounts of the inflation adjustments are cumulative and, if not applied in one year, may be applied in future years. For example, if the COLA adjustment for 2027 were 3%, then in 2027 we could raise each flat fee by up to 3%. However, if we elected to raise a particular flat fee by 1% in 2027, we would have the right to carry forward the additional 2% increase to be applied in a future year. If the COLA adjustment for 2028 were 2%, then, because of the inflation adjustment we did not apply in 2027, we would have the right to increase such flat fee in 2028 by up to 4% (2% for 2028 and 2% for the unapplied adjustment in 2027). If we were to increase such flat fee in 2028 by only 2%, then the remaining 2% adjustment would continue to be available to be applied to increases in such flat fee in future years, and so on.
(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.
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| revenues). We or our affiliate will collect | |||
| any such payments, and we have the right | |||
| to charge a fee to cover the credit card | |||
| transaction fees associated with such | |||
| payments as well as a reasonable fee for | |||
| our or our affiliate's involvement with the | |||
| administration of this payment channel | |||
| ("Administrative Credit Card Fee"). | |||
| The current Administrative Credit Card | |||
| Fee is equal to 3% of any amount paid by a | |||
| third-party using our designated credit card | |||
| processing platform to pay fees or other | |||
| amounts owed in connection with the | |||
| Publication or relating to the Franchised | |||
| Business, but we may change the amount | |||
| of the Administrative Credit Card Fee upon | |||
| 90 days' notice to you. | |||
| Currently, we only charge the | |||
| Administrative Credit Card Fee in | |||
| connection with event revenues (amounts | |||
| paid by event sponsors or others connected | |||
| with local events you have organized); but, | |||
| we reserve the right, upon 90 days' notice | |||
| to you, to charge an Administrative Credit | |||
| Card Fee in connection with any other | |||
| third-party payments of fees or other | |||
| amounts owed in connection with the | |||
| Publication or relating to the Franchised | |||
| Business made using our designated credit | |||
| card processing platform. | |||
| We may increase the amount of the | |||
| Administrative Credit Card Fee from time | |||
| to time, including due to increases in | |||
| vendor pricing, up to a maximum of 5% of | |||
| the total amount paid by any third-party |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal states that it does not have any present plans to increase any fees. However, Belocal retains the right to increase fees in the future based on changes in market conditions, the cost of providing services, and future policy changes.
Belocal may adjust flat fees annually to account for inflation. This adjustment can be up to the yearly cost-of-living adjustment (COLA) percentage identified by the United States Social Security Administration or a similar metric. If Belocal does not apply the full COLA adjustment in one year, it can carry forward the remaining increase to future years.
Belocal can increase each fee upon notice to the franchisee, but 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 of the FDD. Belocal also charges an Administrative Credit Card Fee equal to 3% of any amount paid by a third-party using their designated credit card processing platform, which may increase up to a maximum of 5% with 90 days' notice.