How is the Belocal Transfer Damages fee calculated?
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. |
| Wind-Down Damages | An amount equal to the greater of (a) 6 months' worth of the average Royalty you paid for the 12 months prior to the default or (b) $2,500 | On demand | Only payable if you fail to comply with the wind-down procedures or abandon the Franchised Business. |
| Transfer Damages | Greater of 15% of transfer price or $25,000 | Within 15 days of our demand | You will pay these transfer damages if you do not comply with the transfer terms under the Franchise Agreement. |
Notes:
- (1) All fees and expenses in this Item 6 are non-refundable and, unless otherwise indicated in the preceding chart, are imposed uniformly by us, collected by us, and are payable 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 Transfer Damages fee is calculated as the greater of 15% of the transfer price or $25,000. This fee is payable if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement. The fee is due within 15 days of demand from Belocal.
For a prospective Belocal franchisee, this means that if they attempt to transfer their franchise but do not meet the franchisor's requirements for transfer, they could be liable for a significant fee. The actual amount will depend on the agreed-upon transfer price, but it will be no less than $25,000. For example, if a franchisee sells their franchise for $100,000 but fails to comply with the transfer terms, the Transfer Damages would be $25,000, as 15% of $100,000 is $15,000, and the greater of the two is $25,000.
It is important for franchisees to carefully review and adhere to the transfer terms in the Franchise Agreement to avoid incurring this fee. Franchisees should seek legal counsel to fully understand their obligations and ensure compliance during any transfer process. This fee is in place to protect Belocal's interests and ensure that any transfer of the franchise is conducted properly and in accordance with their standards.