Does Belocal specify the form of demand for the Transfer Damages?

Question

Accepted Answer

| 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)

Does Belocal specify the form of demand for the Transfer Damages?

Answer from 2025 FDD Document

What This Means (2025 FDD)

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.