What is the initial franchise fee for the first Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
States of America.
Cash consists of cash and money market funds which are considered to be cash or cash equivalents.
Deferred Franchise Development Costs. Costs incurred in connection with the development of the franchise concept, offering documents and operations manuals have been deferred. The costs are being amortized using the straight-line method over the 5-year estimated useful life of the asset. Such amortization will begin when franchise sales commence.
Initial franchise fees and royalties. Initial franchise fee is recognized when the obligations required by the franchise agreement has been substantially performed by the Company which is when the franchisee begins operating the franchised business. Initial franchise fees is $5,000 for the first franchise, $3,750 for the second franchise and $
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the initial franchise fee for the first franchise is $5,000. The initial franchise fee covers obligations by Bevaris Alliance such as site selection, operations manuals, marketing plans, a company-sponsored website, initial training, and other services necessary for the franchisee to commence operations.
For a prospective franchisee, this means that $5,000 is required to get started with the first Bevaris Alliance franchise. This fee is recognized by Bevaris Alliance when they have substantially performed their obligations under the franchise agreement, which is when the franchisee begins operating the franchised business.
It is important to note that the initial franchise fee decreases for subsequent franchises. The fee is $3,750 for the second franchise and $2,500 for each franchise thereafter. This tiered fee structure may incentivize franchisees to open multiple locations.