Is the Nonsufficient Funds Fee payable by a Bevaris Alliance franchisee, and under what condition?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.12 Nonsufficient Funds Fee.
The Franchisee shall pay the Nonsufficient Funds Fee, when applicable.
- 4.14 Payment method. Unless the Franchisor otherwise notifies the Franchisee in writing, the Franchisee shall make all payments by electronic funds transfer to Franchisor's bank account which Franchisor will provide to Franchisee.
Franchisor may charge Franchisee for insufficient electronic funds transfers.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, a Nonsufficient Funds Fee is payable by the franchisee when applicable. Specifically, Bevaris Alliance may charge franchisees for insufficient electronic funds transfers.
This means that if a Bevaris Alliance franchisee attempts to make a payment to the franchisor via electronic funds transfer, and the transfer is rejected due to insufficient funds in the franchisee's account, the franchisee will be charged a Nonsufficient Funds Fee. The FDD does not specify the amount of this fee.
Franchisees should ensure they have sufficient funds available when making payments to Bevaris Alliance via electronic funds transfer to avoid incurring this fee. It is common practice for franchisors to charge such fees to cover the administrative costs associated with handling failed payments.