On what page can I find information about the Transfer Fee for Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| PAYING OTHER FEES11 | SECTION C: DAILY OPERATING PROCEDUR | | Annual Meeting ◀11 | SUGGESTED HOURS OF OPERATION | | Transfer Fee ◀11 | DAILY ROUTINES | | Renewal Fee ◀11 | Daily Routines-Management ◀ |
Transfer Fee. 50% of the then current initial franchise fee.
Initial franchise fees and royalties. Initial franchise fee is recognized when the obligations required by the franchise agreement has been substantially performed by the Company which is when the franchisee begins operating the franchised business. Initial franchise fees is $5,000 for the first franchise, $3,750 for the second franchise and $2,500 for each franchise thereafter.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, information regarding the Transfer Fee can be found on page 11. The document also defines the Transfer Fee as 50% of the then-current initial franchise fee.
For a prospective Bevaris Alliance franchisee, this means that if they decide to sell or transfer their franchise to someone else, they will be required to pay Bevaris Alliance a fee equal to half of the initial franchise fee that Bevaris Alliance is charging new franchisees at that time. This fee compensates Bevaris Alliance for the administrative costs and efforts associated with approving the transfer and bringing in a new franchisee.
It's important for prospective franchisees to understand all the costs associated with transferring a franchise, including this transfer fee, as it can significantly impact the financial implications of selling their business. The initial franchise fee for the first franchise is $5,000, so the transfer fee would be $2,500.