When is the Belocal Transfer Damages fee due, and what are the two possible ways the amount is calculated?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 Belocal's demand. This fee is charged if a franchisee fails to comply with the transfer terms outlined in the Franchise Agreement.
The amount of the Transfer Damages fee is calculated as the greater of two possible amounts. The first calculation is 15% of the transfer price. The second possible calculation is a flat fee of $25,000.
For a prospective Belocal franchisee, this means that if they attempt to transfer their franchise but fail to meet the requirements specified in the Franchise Agreement, they could be liable for a significant fee. The fee will be either 15% of the sale price or $25,000, whichever is higher, so it is important to understand the transfer terms in the Franchise Agreement.