For Bevaris Alliance franchisees in California, when is the payment of all initial fees due?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees in California have a deferred payment schedule for initial fees. Unlike franchisees in other states who pay the initial fee upon signing the Franchise Agreement, California franchisees do not have to pay any initial fees until Bevaris Alliance has completed all of its initial obligations to the franchisee and the franchisee is open for business.

This arrangement benefits prospective Bevaris Alliance franchisees in California by reducing their upfront financial burden. Instead of paying the $25,000 initial fee (or $12,500 for subsequent franchises) immediately, they can delay payment until they are ready to begin operations. This can significantly ease cash flow constraints during the startup phase of the business.

However, the FDD also states that payments made are considered earned and non-refundable when paid. Therefore, while California franchisees get the benefit of deferred payment, once they do pay the initial fee, it becomes non-refundable, similar to the standard policy for all franchisees. Prospective franchisees should carefully consider their financial situation and the franchisor's performance of its obligations before making any payments.