Under what circumstances is the Belocal Management Fee payable?
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. |
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the Management Fee is only payable under specific circumstances. This fee is triggered if Belocal must step in to operate the franchise due to events such as the franchisee's death, disability, or default.
When applicable, the Management Fee is calculated as 45% of the monthly Cash Received by the franchise, in addition to any expenses Belocal incurs while managing the business. This fee is separate from, and in addition to, any other fees that the franchisee owes to Belocal under the Franchise Agreement.
For a prospective Belocal franchisee, this means that the Management Fee is not a standard, ongoing fee. It is only levied in situations where the franchisee is unable to manage the business themselves and Belocal has to take over operations. Franchisees should understand the conditions that could trigger this fee and factor it into their risk assessment.