Under what conditions is the Belocal franchisee required to pay the Management Fee, and what does this fee cover?
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 a charge that a franchisee must pay only under specific circumstances. This fee is triggered if Belocal has to step in and operate the franchise business due to events such as the franchisee's death, disability, or failure to meet the obligations outlined in the franchise agreement (defaults).
The Management Fee is calculated as 45% of the monthly Cash Received by the franchise, in addition to covering any expenses that Belocal incurs while managing the business. This means that if Belocal takes over operations, the franchisee will not only lose a significant portion of their revenue but will also be responsible for reimbursing Belocal for any costs they incur during the management period.
This fee is in addition to any other fees that the franchisee owes to Belocal. It is important for prospective franchisees to understand that the Management Fee is not a standard, ongoing fee but rather a contingency that arises from specific, potentially negative situations. Franchisees should aim to prevent these situations by adhering to the franchise agreement and maintaining the operational health of their business.