What is the latest point at which a Bevaris Alliance franchisee in California must pay the initial fee?
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, franchisees in California have a deferred payment schedule for the initial franchise fee. Unlike franchisees in other states, California-based franchisees are not required to pay the $25,000 initial fee upon signing the Franchise Agreement.
Instead, the FDD states that California franchisees postpone payment of all initial fees until after Bevaris Alliance has fulfilled all of its initial obligations to the franchisee. This includes assistance in setting up the Branded Business, providing the Bevaris Alliance Manual, providing written specifications for approved supplies, specifying computer hardware and software, and providing an initial training program.
The payment is due only once the franchisee is open for business. Once paid, the fees are considered earned and are non-refundable. This arrangement benefits California franchisees by allowing them to delay the initial investment until they are closer to generating revenue, reducing the upfront financial burden and risk.