For Bevaris Alliance, what is the definition of 'Control'?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
monthly rent is $2,075 on the lease which is effective August 29, 2023. The lease term ends on August 31, 2025. The annual lease payment is $24,900, excluding tax. The Company is responsible for most executory costs and additional charges for use of the facility and other business support services not covered under the lease. An affiliate, Bevaris Alliance, Inc., has agreed to split fifty percent of the above monthly rent with the Company.
10. RELATED PARTIES:
The following summarizes entities which are affiliated by common control and operate the same type of business as the Company. Any transactions between the Company and the affiliate and other related parties are also summarized.
Bevaris A
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the term 'control' is used to describe the relationship between entities affiliated by common control that operate the same type of business as the company. Specifically, Bevaris Alliance, Inc. (BAI) is identified as an entity under common control because it is owned by the same member as Bevaris Alliance Franchise System, LLC.
This common control leads to certain related-party transactions. For example, BAI paid legal and professional fees, as well as other costs, to establish Bevaris Alliance Franchise System, LLC and develop its franchise network. Additionally, Bevaris Alliance Franchise System, LLC shares office space with BAI. BAI is also a franchisee of Bevaris Alliance, incurring franchise fees payable to the company.
For a prospective franchisee, understanding these relationships is crucial. It highlights potential conflicts of interest and the flow of funds between related entities. It's important to note that transactions between the company and its affiliates could be influenced by this common control, potentially affecting the financial performance and stability of Bevaris Alliance.