Does Belocal specify the method of payment for the Transfer Damages?
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 Transfer Damages is not specified. The FDD does, however, outline the amount and due date for these damages. If a franchisee does not comply with the transfer terms under the Franchise Agreement, they are liable for Transfer Damages.
The Transfer Damages are calculated as the greater of 15% of the transfer price or $25,000. These damages are due within 15 days of Belocal's demand.
Since the FDD does not specify the acceptable methods of payment, a prospective Belocal franchisee should clarify with the franchisor which payment methods are accepted for the Transfer Damages to ensure compliance and avoid potential issues.