What does Note 6 refer to regarding the Franchise Portal fee for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
good or excellent.
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- Should the Franchise Portal Fee be set in an amount to exceed $250 per month, Franchisor shall notify Franchisee of such
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Note 6 clarifies the conditions under which the Franchise Portal Fee, typically up to $250 per month, may be adjusted. Specifically, if Bevaris Alliance decides to increase the Franchise Portal Fee beyond $250 per month, they are obligated to provide written notification to the franchisee regarding this change. This ensures that franchisees are informed in advance of any potential increase in this monthly fee. The fee is due as incurred.
This notification requirement is a protective measure for franchisees, allowing them to anticipate and budget for any changes in their operating expenses. It also provides an opportunity for franchisees to discuss the rationale behind the fee increase with Bevaris Alliance. Without such a clause, the franchisor could unilaterally raise the fee without prior warning, potentially impacting the franchisee's profitability.
In the franchise industry, it is common for franchisors to reserve the right to modify fees, but transparency and communication are key to maintaining a positive franchisor-franchisee relationship. This note ensures that Bevaris Alliance franchisees will receive advance notice if the Franchise Portal Fee is ever increased beyond the stated amount.