Is there a maximum amount for the Belocal 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 such as death, disability, or default by the franchisee.
Notably, the Management Fee is in addition to any other fees due to Belocal. The FDD does not specify a maximum amount for the Management Fee. It is calculated as a percentage of monthly cash received, plus any expenses incurred by Belocal while managing the business.
Prospective Belocal franchisees should consider the potential financial implications of Belocal needing to manage the franchise, as the Management Fee could significantly impact profitability during that period. It would be prudent to discuss with Belocal under what specific circumstances they would take over operations and what typical expenses they might incur while managing the business to better understand the potential costs associated with this fee.