For a Bevaris Alliance franchise, can the franchisee charge prices exceeding the maximum charges specified by the franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
7.7 Pricing. The Franchisee shall:
- (a) Comply with consult with the Franchisor as to the prices to be charged in the Franchisee's Business and refrain from charging in excess of any maximum charges specified by the Franchisor; and
- (b) not enter into any arrangement with any other franchisee concerning the prices to be charged.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees must consult with Bevaris Alliance regarding pricing and are prohibited from exceeding any maximum charges set by the franchisor. This policy ensures that franchisees comply with pricing guidelines established by Bevaris Alliance.
This requirement means that a prospective Bevaris Alliance franchisee will have limited autonomy in setting prices for their services. They must adhere to the maximum prices specified by Bevaris Alliance, which could impact their profitability depending on local market conditions and operating costs. Franchisees are also prohibited from colluding with other franchisees to fix prices.
This pricing control is a common practice in franchising, allowing the franchisor to maintain brand consistency and manage customer expectations across all locations. However, it's crucial for potential franchisees to carefully evaluate the franchisor's pricing strategy and understand how it will affect their bottom line. Franchisees should discuss pricing strategies with existing franchisees to understand the real-world implications of this policy.