Are the fees paid to Bevaris Alliance refundable, and if so, which ones?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Fees are imposed by and paid to us. Except for the Franchise Fee, all fees are non-refundable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 10–11)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, most fees paid to the franchisor are non-refundable, with the exception of the Franchise Fee. The Franchise Fee for a single franchise is a lump sum of $25,000 due upon signing the franchise agreement.
This means that if a prospective franchisee decides not to proceed with opening a Bevaris Alliance franchise after signing the agreement, they may be able to get the $25,000 Franchise Fee refunded, but other fees such as those related to POS/Back Office systems, initial inventory, licenses and permits, professional fees, insurance, training expenses, additional funds/working capital, kitchen equipment, and start-up expenses are non-refundable. These other fees range from $500 to $150,000 and are paid to approved vendors, third parties, your advisors, and your insurance company.
It is important for potential franchisees to understand which fees are refundable and under what conditions. Franchisees should carefully review the franchise agreement and consult with a legal and financial advisor to fully understand the implications of these non-refundable fees before signing the agreement and making any payments to Bevaris Alliance or its vendors.