When is the Royalty Fee due for a Bevaris Alliance franchise?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, the royalty revenue from franchisees is based on 10.0% of the franchisee's weekly gross sales receipts. This royalty is recognized in the period when the related service or sale occurs. In addition to the royalty fee, there is also a 2% system marketing fee.

For a prospective Bevaris Alliance franchisee, this means that they will need to remit 10% of their weekly gross sales as a royalty fee, along with an additional 2% for the system marketing fund. These fees are tied directly to the franchisee's sales performance each week.

The FDD specifies that the company recognizes this revenue in the period when the service or sale occurs, meaning that the royalty and marketing fees are due concurrently with the sales they are based on. This arrangement ensures that the franchisor's income is aligned with the franchisee's revenue generation.