What is the definition of 'service' under the Bevaris Alliance franchise agreement?

Based on the 2024 Bevaris Alliance Franchise Disclosure Document, the term 'service' is referenced within the context of the Branded Business that Bevaris Alliance has developed. The franchisor has built a substantial reputation associated with high standards of service. The franchisor has also developed specialized products and services to be used in the Branded Business, with the current range of products and services listed in the manual. The franchisor has applied to register or has registered the trademarks which are associated with the products and/or services.

Within the financial statements, royalty revenue from franchisees is based on 10.0% of the franchisee's weekly gross sales receipts and is recognized in the period in which the related service or sale occurs. In addition to the royalty fee there is a 2% system marketing fee. The company contracts directly with each school or location for the services to be provided by the franchisee. The company then assigns the contract to the franchisee which is responsible for providing the meals, beverages and other services under the contract and billing and collecting revenue from such activity.

While the FDD mentions 'services' multiple times, it does not provide a specific, stand-alone definition of the term 'service' itself. A prospective franchisee should seek clarification from Bevaris Alliance regarding a precise definition of 'service' as it pertains to the franchise agreement. Understanding the scope of services covered under the franchise is crucial for operational and financial planning.