Does any officer of Bevaris Alliance currently own an interest in any supplier?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
We estimate 85% - 95% of a franchisee's total purchases will be from us or our designated suppliers. We do not provide any material benefits to you based upon your purchase of particular products or use of particular suppliers. No officer of Bevaris Alliance owns an interest in any supplier at this time.
We may require you to obtain our approval of specific promotional and advertising materials from designated suppliers or sources for as long as you operate your Bevaris Alliance. We will provide you with our Bevaris Alliance Manual and bulletins, notes, or amendments, which will contain the specifications, standards, and restrictions for your operation of your Bevaris Alliance.
As we determine consumer preferences and trends in the marketplace, or develop new marketing techniques, technologies, products, services and materials, we anticipate that we will formulate and modify our standards and specifications as we consider appropriate and useful and notify you through amendments to the Bevaris Alliance Manual via company newsletters and/or bulletins or updated Manual(s). We do not allow you to contract with alternative suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 11–12)
What This Means (2024 FDD)
According to the 2024 FDD, no officer of Bevaris Alliance owns an interest in any supplier at this time. This means that the company's leadership does not have a financial stake in the companies that provide goods or services to Bevaris Alliance franchisees.
This arrangement is generally seen as a way to avoid potential conflicts of interest. If an officer had an ownership stake in a supplier, they might be incentivized to choose that supplier even if it wasn't the best option for franchisees in terms of price, quality, or service. The FDD states that franchisees must purchase Bevaris Alliance products from the franchisor or from an approved and/or designated supplier. Franchisees do not have the option to contract with alternative suppliers.
However, the FDD also states that Bevaris Alliance estimates that 85% - 95% of a franchisee's total purchases will be from the franchisor or its designated suppliers. While there is currently no officer interest in suppliers, this high percentage of required purchases means that the franchisor has significant control over the supply chain. A prospective franchisee should independently evaluate the approved suppliers to ensure their pricing and quality are competitive.