Under what conditions can Belocal implement or change the Event Revenue Royalty?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All fees and expenses in this Item 6 are non-refundable and, unless otherwise indicated in the preceding chart, are imposed uniformly by us, collected by us, and are payable to us. Except as otherwise noted, we may increase these fees based on changes in market conditions, our cost of providing services, and future policy changes, but we have no present plans to increase any fees. We do not currently require you to participate in, nor have we created, any cooperatives.
- (2) This franchise opportunity is a commission-based program. For each Publication you manage, you will receive a Commission that equals:
- (i) For any print advertisement you sell for inclusion in the Publication, the amount equal to the total Cash Received (as defined below) for the Publication in the applicable month; minus the Royalty (set forth in the preceding chart) for the Publication for the applicable month; minus the Publication Expense (set forth in the preceding chart) for the Publication for the applicable month; plus
Source: Item 6 — OTHER FEES (FDD pages 14–31)
What This Means (2025 FDD)
Based on the 2025 Belocal Franchise Disclosure Document, Belocal may increase fees based on changes in market conditions, their cost of providing services, and future policy changes. However, Belocal states that they have no present plans to increase any fees.
For each publication a Belocal franchisee manages, they will receive a commission. This commission is calculated by subtracting the royalty and publication expenses from the total cash received for print advertisements in the publication for the applicable month. The royalty is one factor that determines the commission a franchisee receives.
While Belocal retains the right to modify fees, they also indicate no current intention to do so. Prospective franchisees should inquire about the specific factors that could trigger fee increases and how much advance notice Belocal provides before implementing such changes. Understanding these potential changes is crucial for projecting profitability and managing the financial aspects of the franchise.