What was the marketing reserve for Bevaris Alliance in 2022?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
.99% per annum. The balance due at December 31, 2023 and 2022 is $5,997 and $2,924, respectively.
6. LINE OF CREDIT:
The Company maintains a line of credit in the amount of $40,000 with a finance company. Interest on the line of credit is 59.9% per annum. Line of credit activity during
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the system marketing reserve fund balance at the end of 2022 was $72,220. This fund is supported by a 2% system marketing fee charged to franchisees. These funds are earmarked for the development and expansion of the Bevaris Alliance franchise system, including advertising and marketing programs.
For a prospective franchisee, this means that 2% of their gross sales goes into this marketing fund, which is then managed by Bevaris Alliance to promote the brand as a whole. The balance of the fund at the end of the year indicates the total amount of unspent marketing fees available for future campaigns and initiatives.
It is important for potential franchisees to understand how these marketing funds are used, what specific marketing activities are planned, and what impact these activities are expected to have on their individual franchise's performance. Reviewing past marketing initiatives and their outcomes would provide valuable insight into the effectiveness of the marketing reserve fund management by Bevaris Alliance.