How much was the Bevaris Alliance company charged in management fees by the company's member during 2023?
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 management fees by the company's member. During 2023, the company was charged $486,000 in management fees. In 2022, the company was charged $96,000 in management fees. These fees were charged under an informal management agreement.
This means that Bevaris Alliance franchisees should be aware that the company incurs significant management fees paid to its member. These fees can fluctuate substantially from year to year, as evidenced by the large difference between the 2022 and 2023 amounts.
Prospective franchisees should inquire about the nature of these management fees, what services they cover, and how they are determined. Understanding the details of this arrangement is crucial for assessing the financial stability and transparency of Bevaris Alliance.