When must a Bevaris Alliance franchisee tender the Royalty Fee to the Franchisor?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is open for business. The fee may be refundable, in Franchisor's sole discretion.
- 4.2 Franchise Portal Fee. The Franchisee shall pay Franchisor the Franchise Portal Fee.
- 4.3 Royalty Fee. For each week, the Franchisee shall pay Franchisor the Royalty Fee weekly in arrears no later than the Tuesday of the immediately following week, with effect from the date of this agreement. All other fees under this agreement shall be paid within 30 days of receipt by the Franchisee of the Franchisor's invoice for such payment. Should Franchisee fail to provide Franchisor with adequate revenue data for the weekly sales report and pay such amount in full on or before the Tuesday of the immediately following week, Franchisee shall be assessed and agrees to pay the Noncompliance Fee.
- 4.4 System Marketing Fund.
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 pay the Royalty Fee weekly. Specifically, the Royalty Fee must be paid in arrears no later than the Tuesday of the immediately following week. This payment schedule is effective from the date of the franchise agreement.
In practical terms, this means that a Bevaris Alliance franchisee must calculate their gross sales receipts for each week and remit 10% as the Royalty Fee to Bevaris Alliance by the following Tuesday. Franchisees must also submit a statement of Gross Sales Receipts to Bevaris Alliance on or before that Tuesday.
Failure to provide adequate revenue data and pay the Royalty Fee in full by the specified Tuesday may result in the franchisee being assessed a Noncompliance Fee. This highlights the importance of maintaining accurate sales records and adhering to the payment schedule to avoid additional costs.