When is the initial franchise fee for Bevaris Alliance charged?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
INITIAL FEES**
You pay an initial fee for a single franchise of $25,000.00. If you acquire a second franchise you will receive a 50% discount off the initial franchise fee (second franchise initial fee of $12,500.00). If you acquire a third or more subsequent franchise(s), each of your initial fees for those additional franchises will receive a 50% discount (third or subsequent franchise(s) initial fee of $12,500.00). The fee may be refundable, in our sole
discretion, and is charged when the Franchise Agreement is signed. All franchisee's must pay this uniform fee.
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, the initial franchise fee of $25,000 is charged when the Franchise Agreement is signed. This fee grants the franchisee the right to operate a single Bevaris Alliance franchise.
Notably, franchisees who acquire a second franchise receive a 50% discount on the initial franchise fee, reducing it to $12,500. This same discount applies to the initial fees for the third and any subsequent franchises acquired. This tiered fee structure incentivizes existing franchisees to expand their operations by opening additional locations.
However, there is an exception for franchisees in California. For these franchisees, the payment of all initial fees is postponed until after Bevaris Alliance has completed all of its initial obligations and the franchise is open for business. Once these conditions are met and the payment is made, the fees are considered earned and are non-refundable. This delayed payment structure may reduce the initial financial burden for franchisees in California, but it's important to note that once paid, the fees are non-refundable.