When is the Noncompliance fee due for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remark s |
|---|---|---|---|
| Third Party | Up to $500 per quarter. | Upon invoice. | |
| Quality Assurance | |||
| Audit Fee | |||
| Technology Fee | Will vary under circumstances | As incurred. | Fee for any software licenses used in the ordinary course of business. |
| Franchise Portal | Up to $250 per month. | As incurred. | Fee for Franchise Portal. |
| Fee | (see Note 6) | ||
| Convention Fee | Travel fees and out of pocket expenses but no attendance fee (suggested cost up to $500 per day). | As incurred. | |
| Indemnity | Will vary under circumstances. | As incurred. | You have to reimburse us if we are held liable for claims arising from your Branded Business’s operations. |
| Noncompliance Fee | A $100.00 fee per occurrence. | As incurred | Fee for noncompliance with the Franchise Agreement clause 7. |
| Product or supplier evaluation fee | No fee. | Upon completion of evaluation. | Due if the product or supplier is not approved. |
| Costs and Attorneys’ Fees | Will vary under circumstances. | As incurred by you. | Payable to your attorney for any legal work done to assist you. |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, a franchisee may incur a Noncompliance Fee. This fee is $100.00 per occurrence and is triggered by noncompliance with clause 7 of the Franchise Agreement.
The Noncompliance Fee is due 'as incurred,' meaning it becomes payable when the specific instance of noncompliance occurs. This is a common practice in franchising, where fees are levied when a franchisee fails to meet certain standards or requirements outlined in the franchise agreement.
Prospective Bevaris Alliance franchisees should carefully review clause 7 of the Franchise Agreement to understand what actions or omissions could lead to the assessment of this fee. Understanding these requirements will help franchisees avoid incurring unnecessary costs and maintain compliance with the franchise terms.