Can Belocal waive the Transfer Damages fee under certain circumstances?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 Transfer Damages fee is not waivable. The FDD states that a franchisee will pay Transfer Damages if they do not comply with the transfer terms under the Franchise Agreement.
The Transfer Damages are the greater of 15% of the transfer price or $25,000. This fee is due within 15 days of Belocal's demand.
This means that if a Belocal franchisee attempts to transfer their franchise without meeting all the requirements outlined in the Franchise Agreement, they will be required to pay this potentially substantial fee. Prospective franchisees should carefully review the transfer terms in the Franchise Agreement to understand the conditions that trigger this fee and ensure compliance during any transfer to avoid incurring these damages.