What triggers the Belocal Customer Complaint 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. |
| 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 Customer Complaint Fee is triggered when an advertiser, client, or third party complains to Belocal, and the franchisee fails to satisfactorily resolve the complaint. If this occurs, Belocal will charge the franchisee their costs and expenses associated with responding to and resolving the complaint.
This fee is designed to ensure that Belocal franchisees address customer complaints promptly and effectively. If a franchisee does not adequately handle a complaint, Belocal reserves the right to step in and resolve the issue, passing the associated costs on to the franchisee. This incentivizes franchisees to prioritize customer satisfaction and maintain the brand's reputation.
The amount of the Customer Complaint Fee is not a fixed sum but rather is based on Belocal's actual costs and expenses incurred in resolving the complaint. This means the fee could vary significantly depending on the nature and complexity of the complaint. The fee is due on demand, meaning Belocal can request immediate payment once the costs are calculated.
Prospective Belocal franchisees should be aware of this potential fee and understand the importance of addressing customer complaints promptly and effectively. Maintaining good customer relations is crucial not only for avoiding this fee but also for the overall success and profitability of the franchise. Franchisees should clarify with Belocal what constitutes a 'satisfactory remedy' to a complaint to avoid ambiguity and potential disputes.