Are there any exceptions to the Belocal Management Fee if the franchisor operates the franchise?
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. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Management Fee is only payable if Belocal must operate the franchise under specific circumstances. These circumstances include events such as the franchisee's death, disability, or default. In these instances, Belocal will charge a Management Fee.
The Management Fee is calculated as 45% of the monthly Cash Received, in addition to any expenses Belocal incurs while managing the Belocal franchise. This fee is separate from, and in addition to, any other fees that the franchisee owes to Belocal under the Franchise Agreement.
This arrangement protects Belocal by compensating them for the additional effort and resources required to temporarily manage a franchise due to unforeseen circumstances. For a prospective franchisee, this means understanding that while they typically manage their own business, they will be responsible for this Management Fee if Belocal has to step in and operate the franchise due to the franchisee's inability to do so.