When is the Belocal Transfer Damages fee due?
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. |
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 due within 15 days of demand. This fee is the greater of 15% of the transfer price or $25,000.
This means that if a Belocal franchisee fails to comply with the transfer terms outlined in the Franchise Agreement, Belocal can demand payment of the Transfer Damages. The franchisee then has 15 days to pay the specified amount, which will be either 15% of the price at which they are transferring the franchise or a flat $25,000, whichever is higher.
This fee is separate from the Transfer Fee, which is 100% of the then-current initial franchise fee, plus reasonable attorney's fees, and is due when the transfer is requested. The Transfer Damages are only assessed if the franchisee fails to comply with the transfer terms under the Franchise Agreement.