Is a Bevaris Alliance franchisee required to participate in the System Marketing Fund?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company charges its franchisees a 2% system marketing fund fee to fund the development and expansion of the franchise system which includes advertising and marketing programs. The system marketing reserve fund balance at December 31, 2023 and 2022 is $174,327 and $72,220, respectively.
Royalty revenue from franchisees is primarily based on 10.0% of the franchisee's weekly gross sales receipts and is recognized in
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to participate in the System Marketing Fund. Bevaris Alliance charges its franchisees a mandatory 2% system marketing fund fee.
The purpose of this fund is to finance the development and expansion of the Bevaris Alliance franchise system. These funds are specifically earmarked for advertising and marketing programs designed to promote the brand and attract customers.
As of December 31, 2023, the system marketing reserve fund balance was $174,327, a notable increase from $72,220 at the end of 2022. This indicates a growing investment in marketing initiatives for the Bevaris Alliance system. Franchisees should be aware that this 2% fee is in addition to the 10% royalty fee based on weekly gross sales receipts.