What is the base amount used to calculate the administrative fee for insurance procured by Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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- You must reimburse us for premium and other out-of-pocket costs incurred in connection with us procuring insurance on your behalf plus an administrative fee of 10% of the premium, if we choose to procure such insurance.
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
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.
The administrative fee is calculated as 10% of the insurance premium. This means that the franchisee will pay the cost of the insurance premium, plus an additional 10% of that premium as a fee to Bevaris Alliance for handling the insurance procurement.
This arrangement is fairly common in franchising, as it allows the franchisor to ensure that all franchisees have adequate insurance coverage while also generating some revenue to cover their administrative costs. However, it's important for prospective franchisees to understand that this fee is in addition to the actual cost of the insurance policy.