What is the initial franchise fee for a third or subsequent Bevaris Alliance franchise?
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 for a third or subsequent franchise is $12,500. This represents a 50% discount off the standard initial franchise fee. The initial franchise fee is generally charged when the Franchise Agreement is signed. However, for franchisees in California, payment of the initial fee is postponed until after Bevaris Alliance has completed its initial obligations and the franchisee is open for business.
This discount for additional franchises is a common practice in the franchise industry, intended to incentivize existing franchisees to expand their operations. It reduces the upfront investment required for each new location, making growth more accessible. However, all franchisees must pay this uniform fee.
It's important to note that while the initial franchise fee may be refundable, this is at the sole discretion of Bevaris Alliance. Additionally, for California franchisees, the payments are considered earned and non-refundable once paid. Prospective franchisees should clarify the conditions under which a refund might be granted and factor this into their financial planning.