Who are the fees paid to under the Bevaris Alliance franchise agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Notes:
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- All fees are imposed by and paid to us. All fees are non-refundable.
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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 procure such insurance.
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, most fees are paid directly to the franchisor. Specifically, the FDD notes that "All fees are imposed by and paid to us." This means that franchisees will primarily be remitting payments to Bevaris Alliance for various services, royalties, and other obligations outlined in the franchise agreement.
However, there are exceptions where fees are paid to other parties. For instance, the Costs and Attorneys’ Fees are "Payable to your attorney for any legal work done to assist you." Additionally, the Third Party Quality Assurance Audit Fee, which can be up to $500 per quarter, is paid upon invoice, implying it may be paid to a third-party auditor. Franchisees are also responsible for travel fees and out-of-pocket expenses for the Convention Fee, with suggested costs up to $500 per day, which would be paid to travel providers and other vendors.
Furthermore, if Bevaris Alliance procures insurance on behalf of the franchisee, the franchisee must reimburse Bevaris Alliance for the premium and other out-of-pocket costs, plus an administrative fee of 10% of the premium. Franchisees may also incur costs related to mystery shopper services if their location receives a rating other than good or excellent, with payments made to the mystery shopper firm. Understanding these payment structures is crucial for prospective franchisees to accurately budget and manage their financial obligations under the Bevaris Alliance franchise agreement.