How much was the Bevaris Alliance company charged in management fees by the company's member during 2022?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
liance, Inc. (BAI) is owned by the member of the Company. BAI paid, on behalf of the Company, legal and professional fees as well as other costs in connection with t
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, Bevaris Alliance was charged $96,000 in management fees by the company's member during 2022. In 2023, the company was charged $486,000 in management fees. These fees were charged under an informal management agreement.
This means that Bevaris Alliance incurred a significant expense for management services provided by its member. Prospective franchisees should consider this cost when evaluating the financial performance of the company and its potential impact on their own franchise operations. Understanding the nature of these management services and the basis for the fees is crucial.
It's important to note that the management agreement is described as "informal," which may raise questions about the transparency and accountability of these fees. A prospective franchisee should seek clarification from Bevaris Alliance regarding the specifics of this agreement, the services provided, and how the fees are determined. This due diligence will help in making an informed decision about investing in a Bevaris Alliance franchise.