How long do the parties have to resolve disputes regarding Gross Sales Receipts for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.16 Gross Sales Receipts. The Gross Sales Receipts shall be determined as follows:
- (a) on or before the Tuesday of the immediately following week, the Franchisee shall prepare, and deliver to the Franchisor, a statement of the Gross Sales Receipts for each week and tender the Royalty Fee accruing in said week to Franchisor;
- (b) within 3 days after the Franchisee has delivered the statement of Gross Sales Receipts, the Franchisor shall either confirm in writing that it agrees such statement or give notice that it does not;
- (c) if the Franchisor does not agree to such statement, the parties shall endeavor to resolve all matters in dispute as soon as practicable. If they fail to do so within 14 days of the notice, either party may refer the dispute for resolution to an Expert appointed under clause 24; and
- (d) any payment, additional payment or refund to be made as a result of any decision of the Expert shall be made within 14 days of receipt by the parties of the decision of the Expert.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, if the Franchisor disagrees with the Franchisee's statement of Gross Sales Receipts, both parties must try to resolve the dispute as soon as they can. If they cannot resolve the dispute within 14 days of the notice of disagreement, either party has the option to refer the dispute to an expert for resolution.
Following the expert's decision, any payment, additional payment, or refund resulting from the expert's decision must be made within 14 days of the parties receiving the expert's decision. This structured approach ensures that disputes over financial reporting are addressed promptly and fairly.
This process is important for prospective franchisees because it outlines a clear procedure for resolving disagreements about Gross Sales Receipts, which directly impact royalty fees. Knowing that there is a defined timeline and a mechanism for expert resolution can provide reassurance to franchisees about the fairness and transparency of the financial relationship with Bevaris Alliance.