What is the administrative fee charged by Bevaris Alliance for procuring insurance?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, if Bevaris Alliance chooses to procure insurance on behalf of a franchisee, the franchisee must reimburse Bevaris Alliance for the premium and other out-of-pocket costs incurred. In addition to these costs, Bevaris Alliance charges an administrative fee of 10% of the insurance premium.

This means that if a franchisee's insurance premium is $1,000, the administrative fee would be $100, resulting in a total cost of $1,100 plus any other out-of-pocket expenses incurred by Bevaris Alliance. This fee covers Bevaris Alliance's costs and efforts in securing the insurance policy for the franchisee.

It is important for prospective franchisees to understand that this administrative fee is only charged if Bevaris Alliance chooses to procure the insurance. Franchisees may have the option to obtain insurance independently, which could potentially avoid this fee. Franchisees should clarify with Bevaris Alliance under what circumstances they would procure insurance on the franchisee's behalf and whether franchisees have the option to use their own insurance providers.