Does Belocal specify the method of payment for the Transfer Damages 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 Transfer Damages fee. However, it does state the amount and when it is due. The Transfer Damages fee is the greater of 15% of the transfer price or $25,000.
The Transfer Damages are due within 15 days of Belocal's demand. This fee is payable if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement.
Prospective franchisees should inquire with Belocal about acceptable payment methods for the Transfer Damages fee to ensure they can comply with the payment terms if this fee becomes applicable. Knowing the accepted payment methods will help in planning for potential transfer scenarios.
Without specific details on payment methods, franchisees should also clarify whether payment plans or alternative arrangements are possible in extenuating circumstances. Understanding the flexibility, if any, in payment options is crucial for financial planning.