Does Bevaris Alliance charge a management fee?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
liance, Inc. (BAI) is owned by the member of the Company. BAI paid, on behalf of the Company, legal and professional fees as well as other costs in connection with the establishment of the Company and the development of the franchise
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the company itself was charged management fees in the past. Specifically, during 2023 and 2022, the company was charged management fees by its member, amounting to $486,000 and $96,000, respectively. This indicates that while franchisees may not directly pay a management fee to Bevaris Alliance, the company incurs such fees internally.
Item 5 in the FDD mentions a "Management Fee" on page 12, suggesting that franchisees may be subject to this fee. However, the document does not explicitly state that franchisees are required to pay a management fee to Bevaris Alliance.
Prospective franchisees should clarify with Bevaris Alliance whether a management fee is currently charged to franchisees, how it is calculated, and what services or support it covers. Understanding the details of any potential management fees is crucial for assessing the overall cost and profitability of a Bevaris Alliance franchise.