Does Belocal specify the method of payment 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 document does not specify the method of payment for the Customer Complaint Fee. The FDD does specify the amount and due date for the fee. The amount is Belocal's costs and expenses associated with their response to and any resolution of a complaint. The Customer Complaint Fee is due on demand.
This means that if an advertiser, client, or third party complains to Belocal, and the franchisee fails to satisfactorily remedy the complaint, the franchisee will be responsible for paying Belocal's costs and expenses related to addressing and resolving the complaint. The fee is triggered by the franchisee's failure to resolve a complaint independently.
Prospective franchisees should inquire with Belocal about acceptable payment methods for the Customer Complaint Fee to ensure they are prepared to remit payment promptly when such fees are incurred. Understanding the payment options and any associated policies will help franchisees manage their finances effectively and avoid potential late payment penalties.