Is there a limit to the amount of expenses Belocal can charge for resolving a customer complaint?
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. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, there is no stated limit to the amount Belocal can charge a franchisee for resolving a customer complaint. The franchisee is responsible for covering Belocal's costs and expenses associated with addressing and resolving any complaint made by an advertiser, client, or third party if the franchisee fails to satisfactorily resolve the issue themselves.
This means that a Belocal franchisee could potentially incur significant and unpredictable expenses related to customer complaints. The amount will depend on the nature and complexity of the complaint, as well as the resources and time Belocal deems necessary to resolve it. This fee is payable on demand.
Prospective Belocal franchisees should carefully consider this open-ended liability and attempt to assess the potential frequency and severity of customer complaints in their market. It would be prudent to discuss with Belocal what types of costs and expenses have been charged to franchisees in the past for customer complaint resolution to better understand the potential financial exposure.