Are the initial fees for Bevaris Alliance refundable for franchisees in California after they are paid?
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 the 2024 Bevaris Alliance Franchise Disclosure Document, the initial franchise fee is $25,000. For franchisees in California, the payment of this fee is postponed until after Bevaris Alliance has completed its initial obligations and the franchisee is open for business. Once paid, the FDD states that these fees are considered earned and non-refundable.
This means that while California franchisees do not have to pay the initial fee upfront, they lose the ability to get a refund once the fee is paid. This is a notable difference from the standard policy, where the initial fee may be refundable at the franchisor's discretion.
Prospective franchisees in California should carefully consider this non-refundable clause and ensure they are fully satisfied with the services and support provided by Bevaris Alliance before making the initial fee payment. It would be prudent to seek legal and financial advice to fully understand the implications of this policy.