Is there any guarantee that Belocal will continue to waive the initial franchise fee in the future?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The initial franchise fee for a Franchised Business is $735. However, we are waiving the initial franchise fee for franchises offered or entered into on or after the Issuance Date of this disclosure document that facilitate the publishing of a new publication, unless this disclosure document is amended to reflect otherwise.
We reserve the right to charge the initial franchise fee of $735 if the franchise is for the management of a publication that was formerly a Bridge Publication.
If we were to charge a franchise fee, the fee would be non-refundable and due in a lump sum. Last year, we uniformly waived the initial franchise fee for both new publications and Bridge Publications.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company is currently waiving the initial franchise fee of $735 for new franchises offered on or after the issuance date of the document, specifically those that facilitate the publishing of a new publication. However, this waiver is not guaranteed to continue indefinitely, as Belocal reserves the right to amend the disclosure document and begin charging the fee again.
Belocal also retains the right to charge the initial franchise fee if the franchise involves managing a publication that was formerly a Bridge Publication. This means that the waiver is primarily intended for franchisees starting new publications rather than taking over existing ones. Last year, Belocal uniformly waived the initial franchise fee for both new and Bridge Publications, but this past practice does not bind them to continue the waiver in the future.
For a prospective franchisee, this implies that while you may not have to pay the initial franchise fee upfront, it's crucial to understand that this is subject to change. Belocal could reinstate the fee at any time by amending the FDD. Therefore, it's important to factor the potential fee into your financial planning and discuss the likelihood of the waiver continuing with Belocal representatives during your due diligence.