Are there any limitations on the expenses Belocal can incur when managing a franchise and charging the Management Fee?
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 45% of monthly Cash Received, plus any expenses Belocal incurs in managing the Franchised Business. This fee is only payable if Belocal must operate the franchise due to circumstances like death, disability, or default. The Management Fee is in addition to any other fees owed to Belocal.
The FDD does not explicitly state any limitations or caps on the expenses Belocal can incur when managing the franchise and charging the Management Fee. This means that, under the conditions that trigger the management fee, Belocal could potentially pass through a wide range of expenses to the franchisee, provided they are related to managing the business.
As a prospective franchisee, it is important to seek clarification from Belocal regarding what specific types of expenses they consider recoverable under the Management Fee. Understanding the scope and nature of these potential expenses is crucial for assessing the financial implications of such a scenario. You should also inquire about any internal policies or guidelines Belocal uses to determine which expenses are deemed reasonable and necessary for managing a franchise during a period of operational intervention.