On what page can I find information about the Management Fee for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
liance, Inc. (BAI) is owned by the member of the Company. BAI paid, on behalf of the Company, legal and professional fees as well as other costs in connection with t
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, information regarding management fees charged to Bevaris Alliance can be found in the notes to the financial statements. Specifically, during 2023 and 2022, the company was charged management fees under an informal management agreement by the company's member. These fees amounted to $486,000 in 2023 and $96,000 in 2022.
This information is relevant to prospective franchisees as it provides insight into the financial transactions between Bevaris Alliance and its member. While this specific note reflects fees charged to the company itself, it indicates the types of financial obligations and relationships that exist within the Bevaris Alliance organization. Understanding these internal financial arrangements can help a franchisee assess the overall financial health and stability of the franchisor.
It is important to note that the fees described were charged under an "informal management agreement," which may raise questions about the formalization and transparency of such arrangements. A prospective franchisee may want to inquire about the nature of this agreement, the services provided in exchange for the fees, and whether similar arrangements could impact franchisees directly or indirectly. Further clarification on these points would provide a more complete picture of the financial dynamics within Bevaris Alliance.