What is the monthly rent for the executive offices leased by Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Balance, December 31, 2022 | $ 83,368 |
|---|---|
| System marketing charges applied | ( 5,951) |
| Rent expense split | ( 2,296) |
| Un-reimbursed out of pocket expenses | 11,817 |
| Balance, December 31, 2022 | 86,938 |
| Payments to related party | ( 77,869) |
| Balance, December 31, 2023 | $ 9,069 |
9. LEASES:
Operating Lease-
On August 16, 2023, the Company's sole member entered into a lease agreement on behalf of the Company for executive offices for use as its co
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the company leases executive offices for its corporate headquarters. The monthly rent for these offices is $2,075, with the lease effective from August 29, 2023, and ending on August 31, 2025. The annual lease payment totals $24,900, excluding tax.
Bevaris Alliance is responsible for most executory costs and additional charges related to the facility's use and other business support services not covered under the lease. This means that in addition to the base rent, the company may incur further expenses for utilities, maintenance, and other operational costs associated with the office space.
Interestingly, Bevaris Alliance, Inc., an affiliate of the company, has agreed to split fifty percent of the monthly rent with the company. This arrangement effectively reduces Bevaris Alliance's direct monthly rent expense to $1,037.50. This type of arrangement, where related parties share expenses, is not uncommon but prospective franchisees should understand the terms and implications of such agreements.