What specific transfer terms in the Belocal Franchise Agreement trigger the Transfer Damages fee?
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. |
| Customer Complaint Fee | Our costs and expenses associated with our response to and any resolution of a complaint | On demand | If an advertiser, client, or third party complains to us and you fail to satisfactorily remedy the complaint, you will pay us our costs and expenses associated with our response to and any resolution of the complaint. |
| Wind-Down Damages | An amount equal to the greater of (a) 6 months' worth of the average Royalty you paid for the 12 months prior to the default or (b) $2,500 | On demand | Only payable if you fail to comply with the wind-down procedures or abandon the Franchised Business. |
| 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, a franchisee may incur Transfer Damages if they fail to comply with the transfer terms outlined in the Franchise Agreement. The Transfer Damages fee is the greater of 15% of the transfer price or $25,000. This fee is due within 15 days of demand from Belocal.
This means that if a Belocal franchisee attempts to transfer their franchise without adhering to the specific requirements and procedures detailed in the Franchise Agreement, they will be obligated to pay this potentially substantial fee. The fee is designed to compensate Belocal for any losses or expenses they incur as a result of the non-compliant transfer.
Prospective Belocal franchisees should carefully review the transfer terms within the Franchise Agreement to fully understand their obligations and avoid triggering the Transfer Damages fee. It is important to note that the FDD excerpt does not specify exactly which transfer terms, if violated, would lead to the assessment of Transfer Damages. Franchisees should seek clarification from Belocal regarding these specific terms and conditions to ensure full compliance during any potential transfer of ownership.