Does Belocal specify the form of demand for the Customer Complaint 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, the Customer Complaint Fee is due 'on demand.' This means that Belocal can request this fee from the franchisee whenever a qualifying customer complaint occurs.
The Customer Complaint Fee is levied if an advertiser, client, or third party lodges a complaint with Belocal, and the franchisee fails to resolve it satisfactorily. In such cases, the franchisee is responsible for covering Belocal's costs and expenses related to addressing and resolving the complaint.
This fee is intended to cover Belocal's expenses and is not a fixed amount. The amount will vary depending on the nature and complexity of the complaint, as well as the resources Belocal needs to expend to resolve it. Prospective franchisees should be aware that these costs can potentially be significant, depending on the circumstances of the complaint and should clarify with Belocal what typical costs and expenses might be incurred.
Franchisees should ensure they understand what constitutes a 'satisfactory remedy' of a complaint to avoid incurring this fee. It would be prudent for prospective Belocal franchisees to discuss with existing franchisees how frequently this fee is applied and the typical range of costs associated with it.