What is the Bevaris Alliance franchisee's obligation regarding the preparation of the statement of Gross Sales Receipts?
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.
- 4.18 Noncompliance Fee: In the event the Franchisee is in noncompliance with clause 7, Franchisor, may, in its sole discretion, assess Franchisee the Noncompliance Fee.
**5.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees have specific obligations regarding the preparation and submission of Gross Sales Receipts. The franchisee must prepare and deliver a statement of Gross Sales Receipts to Bevaris Alliance each week, specifically on or before the Tuesday of the immediately following week. Along with this statement, the franchisee must also tender the Royalty Fee that has accrued during that week.
Bevaris Alliance then has a three-day window to either confirm in writing that they agree with the franchisee's statement or to notify the franchisee that they do not agree. If Bevaris Alliance disagrees with the statement, both parties are expected to work towards resolving any discrepancies as quickly as possible. Should they fail to reach an agreement within 14 days of the notice of disagreement, 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 both parties receiving the expert's decision. Furthermore, franchisees are required to maintain records of all sales and Gross Sales Receipts and submit a statement of them to Bevaris Alliance on the Tuesday of each week with the Royalty Fees. These records and statements must be in a form approved by Bevaris Alliance and as specified in the Manual. Franchisees must also keep complete and accurate accounts and records relating to their Business in QuickBooks Online, ensuring these records are full, accurate, up to date, and sufficient to ascertain the amount of the Royalty Fees due.