Does Belocal specify the method of payment for the Wind-Down Damages?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
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 Wind-Down Damages. However, it does specify the amount and when it is due. The Wind-Down Damages are 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.
The Wind-Down Damages are only payable if a franchisee fails to comply with the wind-down procedures or abandons the Franchised Business. The fee is due 'On demand'.
Since the FDD does not specify the method of payment for the Wind-Down Damages, prospective Belocal franchisees should ask the franchisor about acceptable payment methods, such as check, electronic transfer, or other means. Understanding the payment terms will help franchisees plan for potential costs associated with ceasing operations.