Is there a fee for the Software Programs that Belocal acquires or develops?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Software Programs. For a reasonable fee, any Software Programs that Franchisor acquires or develops for use in the System; provided, that Franchisor is under no obligation to develop or acquire such Software Programs.
k. During the term of the Agreement, the following fees shall not be increased by Franchisor by an amount to exceed twenty-five percent (25%) of the amount of the fee that was disclosed to Franchisee in Franchisor's Franchise Disclosure Document: Extended Reach Fee, Extra Copy Orders Fee, Design Revision Fee, Email Address Fee, N2 Franchisee Services Fees, Lead Generation Fees, and Late Commission Fee. Additionally, the maximum event revenue royalty will be the greater of Two Hundred Dollars ($200) per event or five percent (5%) of the gross revenues from an event. The maximum event credit card fee will be five percent (5%) of the amounts paid to the Franchisee by credit card. The additional training fee will not exceed One Thousand Dollars ($1,000) per day, plus travelrelated expenses Franchisee incurs. The maximum software fee will be Two Hundred and Fifty Dollars ($250) per month.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal franchisees must pay a fee for any Software Programs that Belocal acquires or develops for use in the System. The FDD states, "For a reasonable fee, any Software Programs that Franchisor acquires or develops for use in the System". However, Belocal is under no obligation to develop or acquire such Software Programs.
Furthermore, the amendment to the franchise agreement for the State of Michigan states that the maximum software fee will be $250 per month. This provides a cap on the amount Belocal can charge for software.
Prospective franchisees should consider the cost of software when evaluating the overall investment and potential profitability of a Belocal franchise. It would be prudent to inquire about the specific software programs currently in use, their associated fees, and whether there are any planned software updates or additions that could impact costs.