Does Belocal specify the method of payment for the Management 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 method of payment for the Management Fee is not specified. The FDD does not state whether the payment must be made via check, electronic transfer, or another method. The document does specify the amount and due date of the fee.
The Management Fee is 45% of monthly Cash Received, plus any expenses Belocal incurs in managing the Franchised Business. This fee is due monthly. However, this fee is only payable if Belocal must operate the franchise due to circumstances such as death, disability, or default by the franchisee.
Prospective Belocal franchisees should clarify with Belocal the acceptable methods of payment for the Management Fee, as well as any potential penalties for late payments or other non-compliance issues related to fee payments. Understanding these details upfront will help ensure smooth financial operations and avoid potential disputes during the franchise term.