When must a Bevaris Alliance franchisee deliver the statement of Gross Sales Receipts to the Franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
l fees due under this agreement are exclusive of sales tax or similar taxes, which shall, where applicable, be paid by the Franchisee at the prevailing rate on the due date for payment or receipt of the relevant invoice from the Franchisor.
- 4.16 Gross Sales Receipts. The Gross Sales Receipts shall be determined as follows:
- (a) on or before the Tuesday of the immediately following week, the Franchisee shall prepare, and deliver to the Franchisor, a statement of the Gross Sales Receipts for each week and tender the Royalty Fee accruing in said week to Franchisor;
- (b) within 3 days after the Franchisee has delivered the statement of Gross Sales Receipts, the Franchisor shall either confirm in writing that it agrees such statement or give notice that it does not;
- (c) if the Franchisor does not agree to such statement, the parties shall endeavor to resolve all matters in dispute as soon as practicable. If they fail to do so within 14 days of the notice, either party may refer the dispute for resolution to an Expert appointed under clause 24; and
- (d) any payment, additional payment or refund to be made as a result of any decision of the Expert shall be made within 14 days of receipt by the parties of the decision of the Expert.
- 4.17 Third party suppliers. The Franchisee shall be responsible for the payment of all invoices due to third party suppliers. Franchisor may designate mandatory third-party suppliers.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees are required to submit a statement of Gross Sales Receipts to the Franchisor on a weekly basis. Specifically, the franchisee must prepare and deliver this statement on or before the Tuesday of the immediately following week. Along with the statement, the franchisee must also tender the Royalty Fee that has accrued during that week to Bevaris Alliance.
Following the franchisee's submission, Bevaris Alliance has a three-day window to review the statement. During this period, the Franchisor will either confirm in writing that they agree with the statement or provide notice that they do not agree. This confirmation process ensures that both parties are aligned on the reported Gross Sales Receipts and the corresponding Royalty Fees.
In the event that Bevaris Alliance does not agree with the franchisee's statement, both parties are expected to work towards resolving any discrepancies. They have a 14-day period to resolve the matter. If they cannot reach an agreement within this timeframe, either party has the option to refer the dispute to an expert for resolution, as outlined in clause 24 of the franchise agreement. Any payments, additional payments, or refunds resulting from the expert's decision must be made within 14 days of receiving the expert's decision.
In addition to the weekly statement, the franchisee must also maintain records of all sales and Gross Sales Receipts in a form approved by Bevaris Alliance and as specified in the Manual. The franchisee is also required to keep and maintain complete and accurate accounts and records relating to the Franchisee's Business in QuickBooks Online.