How is the amount of a Bevaris Alliance franchisee's contribution to the costs of Franchise Software development and implementation determined?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.10 Information technology. The Franchisee shall:
- (a) use the Franchise Software and do all such things as the Franchisor shall reasonably require (including the purchase or leasing of hardware and entering into applicable software licenses) to permit and/or facilitate the operation and use of the Franchise Software and contribute to all costs associated with the development and implementation of the Franchise Software for use in the Franchisee's Business such amount as shall in the Franchisor's reasonable opinion represent a fair contribution to such costs;
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to contribute to the costs associated with the development and implementation of the Franchise Software. The amount of the contribution is determined by Bevaris Alliance, based on what they reasonably consider a fair contribution to such costs.
This means that Bevaris Alliance has the discretion to decide how much each franchisee will pay towards the software development and implementation. This contribution is in addition to any other fees outlined in the franchise agreement, such as royalty or marketing fees.
As a prospective franchisee, it is important to discuss with Bevaris Alliance how this "fair contribution" is calculated, what the estimated costs could be, and whether there are any caps or limits to the amount a franchisee might be required to pay. Understanding these costs upfront is crucial for assessing the overall financial viability of the franchise.