When is the Noncompliance fee for a Bevaris Alliance franchise due?
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, the Noncompliance Fee is due as incurred. This means that the $100 fee per occurrence for not complying with clause 7 of the Franchise Agreement is payable when the noncompliance event happens.
Franchise agreements typically include clauses that franchisees must adhere to, covering aspects like operational standards, brand representation, and adherence to system-wide policies. Noncompliance can range from minor infractions to serious breaches of contract. The fact that the fee is only $100 suggests that it is intended for minor or easily correctible issues.
Prospective Bevaris Alliance franchisees should carefully review clause 7 of the Franchise Agreement to fully understand what actions or omissions could trigger this fee. Understanding these requirements is crucial for avoiding unnecessary costs and maintaining a positive relationship with Bevaris Alliance. Franchisees should also clarify with Bevaris Alliance what specific actions constitute noncompliance and what steps can be taken to rectify any issues promptly.