For Bevaris Alliance franchisees in California, what conditions must be met before the initial fees are due?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
For franchisees in California, payment of all initial fees is postponed until after all of our initial obligations are complete and you are open for business. Payments made are considered earned and non-refundable when paid.
Source: Item 5 — INITIAL FEES (FDD pages 7–8)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees in California have a unique condition regarding the initial franchise fee. Unlike franchisees in other locations, California franchisees are not required to pay the $25,000 initial fee upon signing the Franchise Agreement.
Instead, the payment of the initial fee is postponed for California franchisees. This postponement lasts until Bevaris Alliance has completed all of its initial obligations to the franchisee. Furthermore, the franchisee must be open for business before the initial fee becomes due.
Once these conditions are met—Bevaris Alliance has fulfilled its obligations and the franchisee has commenced operations—the initial fee becomes payable. It is important to note that once paid, these fees are considered earned and are non-refundable.