According to Bevaris Alliance's 2024 Franchise Disclosure Document, the deferred franchise development costs as of December 31, 2023, were $73,279. After accounting for accumulated amortization of $20,762, the net deferred franchise development costs were $52,517.

Deferred franchise development costs represent expenses Bevaris Alliance incurred in setting up its franchise system. These costs include expenses related to developing the franchise concept, creating offering documents, and writing operations manuals. Bevaris Alliance amortizes these costs using the straight-line method over an estimated useful life of five years, starting when franchise sales begin.

For a prospective Bevaris Alliance franchisee, understanding these figures provides insight into the financial management and long-term planning of the franchisor. The amortization of these costs indicates a systematic approach to recognizing these expenses over time, which is a common accounting practice. The deferred costs are being amortized using the straight-line method over the 5-year estimated useful life of the asset. Such amortization will begin when franchise sales commence.