Who pays for the initial training program provided by Bevaris Alliance?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
States of America.
Cash consists of cash and money market funds which are considered to be cash or cash equivalents.
Deferred Franchise Development Costs. Costs incurred in connection with the development of the franchise concept, offering documents and operations manuals have been deferred. The costs are being amortized using the straight-line method over the 5-year estimated useful life of the asset. Such amortization will begin when franchise sales commence.
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 $
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the initial franchise fee covers the cost of the initial training program. The initial franchise fee is recognized when Bevaris Alliance has substantially performed its obligations under the franchise agreement, which includes providing initial training.
Specifically, the initial franchise fee is $5,000 for the first franchise, $3,750 for the second, and $2,500 for each franchise thereafter. These fees cover site selection, operations manuals, marketing plans, a company-sponsored website, initial training, and other services necessary for the franchisee to begin operations.
This means that franchisees do not have to pay separately for the initial training program, as its cost is included in the initial franchise fee. This is a common practice in franchising, where the initial fee often bundles various pre-opening services and support.