How much were the system marketing charges applied to Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company charges its franchisees a 2% system marketing fund fee to fund the development and expansion of the franchise system which includes advertising and marketing programs. The system marketing reserve fund balance at December 31, 2023 and 2022 is $174,327 and $72,220, respectively.
Royalty revenue from franchisees is primarily based on 10.0% of the franchisee's weekly gross sales receipts and is recognized in
Advertising costs are expensed as incurred. Advertising costs for 2023 and 2022 were $1,230 and $3,212, respectively.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees are charged a 2% system marketing fund fee. This fee is intended to fund the development and expansion of the franchise system, which includes advertising and marketing programs.
The system marketing reserve fund, which collects these fees, had a balance of $174,327 as of December 31, 2023, and $72,220 as of December 31, 2022. This indicates the total amount of funds collected for system-wide marketing purposes.
In addition to the marketing fee, Bevaris Alliance franchisees also pay a royalty fee of 10% of their weekly gross sales receipts. Advertising costs for 2023 and 2022 were $1,230 and $3,212, respectively. A prospective franchisee should inquire about how the system marketing fund is specifically used and what strategies are in place to support franchisees' growth.