What is the high-range estimated cost for the Bevaris Alliance rebate (3 months)?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
INITIAL INVESTMENT
| Type of Expenditure | Amount Est. Low Range | Amount Est. High Range | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|---|
| Franchise Fee for a single franchise (Note 1) | $25,000 | $25,000 | Lump sum | On signing franchise agreement | Us | |
| Rebate (3 months) | $1,500 | $12,000 | Installment | Monthly | Client | |
| POS/Back Office | $500 | $5,000 | Lump sum | As incurred | Approved | |
| System | vendors | |||||
| Initial Inventory (see Note 2) & Office Supplies | $8,000 | $150,000 | Lump sum | As incurred | Approved vendors | |
| Licenses & Permits | $1,000 | $5,000 | Lump sum | Issuance | Others | |
| Professional Fees | $1,000 | $50,000 | Lump sum | Invoice | Your advisors | |
| Insurance (quarterly) | $250 | $50,000 | Lump sum | Invoice | Your insurance company | |
| Training Expenses | $5,000 | $20,000 | Lump sum | Prior to training | Third parties | |
| (see Note 3) | ||||||
| Additional Funds/ | $30,000 | $100,000 | As incurred | As incurred | Third parties | |
| Working Capital | ||||||
| (see Note 4) | ||||||
| Kitchen Equipment | $5,000 | $75,000 | As incurred | As incurred | Third parties | |
| Start-up expenses | $5,000 | $10,000 | As incurred | As incurred | Third parties | |
| (see Note 5) | ||||||
| Total (see Note 6) | $82,250 | $502,000 | #### Notes: |
- 1
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 10–11)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the estimated high-range cost for the rebate (3 months) is $12,000. The low-range estimated cost for the rebate (3 months) is $1,500. This rebate is paid in monthly installments directly to the client.
This cost is part of the franchisee's initial investment, which also includes expenses such as the franchise fee, POS/Back Office system, initial inventory, licenses and permits, professional fees, insurance, training expenses, additional funds/working capital, kitchen equipment, and start-up expenses. The total estimated initial investment ranges from $82,250 to $502,000.
Prospective franchisees should note that these figures are estimates and can vary. Factors such as management skill, local economic conditions, and competition can influence actual costs. The FDD advises reviewing these figures carefully with a business advisor before making any decision to purchase the franchise. Franchisees should also account for potential inflation and fluctuating interest rates, which could impact costs.