What date did Bevaris Alliance enter into the lease agreement for its executive offices?
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's sole member entered into a lease agreement on August 16, 2023, for executive offices to be used as the company's corporate headquarters. The lease became effective on August 29, 2023. The lease agreement specifies a monthly rent of $2,075, which totals an annual lease payment of $24,900, excluding tax. The lease term is set to end on August 31, 2025.
Bevaris Alliance is responsible for most executory costs and additional charges related to the use of the facility and other business support services not covered under the lease. This means that in addition to the base rent, Bevaris Alliance will likely incur expenses for utilities, maintenance, and other operational costs associated with the office space.
An affiliate, Bevaris Alliance, Inc. (BAI), shares the office space and has agreed to split fifty percent of the monthly rent with the Company. This arrangement reduces the financial burden on Bevaris Alliance, as BAI covers half of the monthly rent expense. This type of arrangement, where an affiliate shares costs, is not uncommon in franchising, especially when the franchisor and related entities operate closely together.