What is the process for resolving disputes regarding Gross Sales Receipts for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.16 Gross Sales Receipts. The Gross Sales Receipts shall be determined as follows:
- (a) on or before the Tuesday of the immediately following week, the Franchisee shall prepare, and deliver to the Franchisor, a statement of the Gross Sales Receipts for each week and tender the Royalty Fee accruing in said week to Franchisor;
- (b) within 3 days after the Franchisee has delivered the statement of Gross Sales Receipts, the Franchisor shall either confirm in writing that it agrees such statement or give notice that it does not;
- (c) if the Franchisor does not agree to such statement, the parties shall endeavor to resolve all matters in dispute as soon as practicable. If they fail to do so within 14 days of the notice, either party may refer the dispute for resolution to an Expert appointed under clause 24; and
- (d) any payment, additional payment or refund to be made as a result of any decision of the Expert shall be made within 14 days of receipt by the parties of the decision of the Expert.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the process for resolving disputes related to Gross Sales Receipts involves several steps. Each week, the franchisee must prepare and deliver a statement of Gross Sales Receipts to Bevaris Alliance, along with the corresponding Royalty Fee. Bevaris Alliance then has three days to either confirm agreement with the statement in writing or provide notice of disagreement.
If Bevaris Alliance disagrees with the franchisee's statement, both parties are expected to work towards resolving the dispute as quickly as possible. They have a 14-day window to come to an agreement. If they cannot resolve the issue within those 14 days, either party has the option to refer the dispute to an expert for resolution. This expert is appointed under clause 24 of the franchise agreement, though the FDD excerpt does not specify how the expert is selected or what their qualifications are.
Following the expert's decision, any payment, additional payment, or refund resulting from that decision must be made within 14 days of the parties receiving the expert's determination. This structured process ensures that disputes over Gross Sales Receipts are addressed in a timely manner, first through direct negotiation and then, if necessary, through expert resolution. Franchisees should be aware of these timelines and procedures to ensure compliance and protect their interests.