What is the transfer fee for a Belocal franchise based on?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Upon application for consent, Franchisee must pay Franchisor a transfer fee in an amount equal to the then-current initial franchise fee that Franchisor generally charges to new franchisees, plus Franchisor's reasonable attorneys' fees incurred in connection with the transfer;
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the transfer fee is based on the then-current initial franchise fee that Belocal generally charges to new franchisees, plus Belocal's reasonable attorneys' fees incurred in connection with the transfer.
For a prospective Belocal franchisee, this means that if they decide to sell their franchise to a new owner, they will be required to pay a transfer fee. This fee is calculated based on the initial franchise fee that Belocal is charging new franchisees at the time of the transfer, in addition to any legal costs Belocal incurs during the transfer process.
This could potentially be a significant cost, as initial franchise fees can be substantial. It is important for franchisees to factor in this potential expense when considering selling their franchise. The new franchise agreement may also include higher fees than the original agreement.