Are all fees imposed by Bevaris Alliance paid to the franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
s' Fees | | | |
Notes:
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- All fees are imposed by and paid to us. All fees are non-refundable.
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- "Gross Sales Receipts" is the total gross sales revenues accrued or collected from the operations of Franchisee's Branded Business (as defined in the Franchise Agreement), whether for cash, check, credit card, pre-paid cards, pre order and paid meals through a designated software or on credit terms, from all sales of food, beverages, and other items and services (Food and Beverages) offered and sold by the Branded Business. The following shall be deducted from (or, as appropriate within its context, not included in) Gross Sales Receipts: (a) Any amounts, whether in cash, credit, or otherwise refunded to customers; (b) All amounts received in connection with the settlement of claims for damaged or unsalable Food and Beverages; (c) All amounts which are deemed to represent uncollectible accounts, bad debts or costs of collection; (d) The cost of meals provided to the employees of Franchisee at cost, if any, and the cost of charitable, promotional, and other complimentary meals given in the ordinary course of business and as is customary for similar operations.
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- We will not charge for initial training, beyond the franchise fee. Up to three people are allowed to attend training (you, partner, spouse or assistant manager) at no additional cost, provided they attend the same training session. Additional attendees or new trainees must pay $500 per day. You are responsible for travel expenses, salaries, etc.
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- You must reimburse us for premium and other out-of-pocket costs incurred in connection with us procuring insurance on your behalf plus an administrative fee of 10% of the premium, if we choose to proc
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, generally, all fees are paid to the franchisor. Specifically, Note 1 in Item 6 states that all fees are imposed by and paid to Bevaris Alliance, and that all fees are non-refundable. This means that franchisees should expect to remit all required payments directly to Bevaris Alliance, and under normal circumstances, these payments will not be returned.
However, the FDD also indicates some exceptions. The table outlining other fees includes a line item for "Costs and Attorneys’ Fees," which are "Payable to your attorney for any legal work done to assist you." This is a notable exception, as these fees are paid to the franchisee's own attorney rather than to Bevaris Alliance. Additionally, the table includes a "Third Party Quality Assurance Audit Fee" of up to $500 per quarter, payable upon invoice, suggesting this fee is paid to a third-party auditor, not directly to Bevaris Alliance.
Therefore, while the general rule is that fees are paid to Bevaris Alliance, franchisees should be aware of specific instances where payments are directed to third-party service providers, such as legal counsel or quality assurance auditors. Understanding these exceptions is crucial for managing expenses and maintaining accurate financial records as a Bevaris Alliance franchisee.