What costs, besides rent and tax, is Bevaris Alliance responsible for regarding the leased facility?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Balance, December 31, 2022 | $ 83,368 |
|---|---|
| System marketing charges applied | ( 5,951) |
| Rent expense split | ( 2,296) |
| Un-reimbursed out of pocket expenses | 11,817 |
| Balance, December 31, 2022 | 86,938 |
| Payments to related party | ( 77,869) |
| Balance, December 31, 2023 | $ 9,069 |
9. LEASES:
Operating Lease-
On August 16, 2023, the Company's sole member entered into a lease agreement on behalf of the Company for executive offices for use as its co
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, Bevaris Alliance is responsible for most executory costs and additional charges for the use of its corporate facility. The document specifies that these costs are for business support services not covered under the lease. The monthly rent for the executive offices, which serve as the corporate headquarters, is $2,075, totaling an annual lease payment of $24,900, excluding tax. An affiliate, Bevaris Alliance, Inc., covers fifty percent of the monthly rent.
For a prospective franchisee, this information provides insight into the operational expenses Bevaris Alliance incurs for its corporate headquarters. While the exact nature of 'executory costs' and 'additional charges' is not detailed, these are costs beyond the base rent and taxes. Understanding these additional costs can help a franchisee gauge the financial stability and operational efficiency of the franchisor.
It's important to note that the FDD does not provide a comprehensive list of these executory costs and additional charges. A prospective franchisee should seek clarification from Bevaris Alliance regarding the specific types and amounts of these costs to better understand the franchisor's financial obligations and operational overhead.