Does the waiver of the initial franchise fee by Belocal remain in effect for Maryland franchisees, despite the disclosure regarding deferred payment?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Even though we have waived payment of the initial franchise fee, the Maryland Securities Division has required us to defer your obligation to pay all initial franchise fees, including payments for goods and services received from us, until we have performed our pre- opening obligations and you begin operating the Franchised Business. Notwithstanding the foregoing required disclosure, our waiver of the initial franchise fee remains in full force and effect.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the waiver of the initial franchise fee remains in effect for Maryland franchisees. The Maryland Securities Division requires Belocal to defer the franchisee's obligation to pay the initial franchise fee until Belocal has fulfilled its pre-opening obligations and the franchisee has started operating the franchised business. Despite this required deferral, Belocal's waiver of the initial franchise fee is still in full effect.
This means that while a Maryland franchisee might see language about a deferred payment of the initial franchise fee due to state regulatory requirements, they will not actually be required to pay this fee. Belocal is still waiving the initial franchise fee for these franchisees.
This waiver could be a significant benefit for prospective Belocal franchisees in Maryland, reducing their initial investment and making the franchise opportunity more accessible. Franchisees should confirm with Belocal that the waiver is still applicable at the time of signing the franchise agreement.