When is the Royalty Fee due from a Bevaris Alliance franchisee?
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.
- 4.17 Third party suppliers. The Franchisee shall be responsible for the payment of all invoices due to third party suppliers. Franchisor may designate mandatory third-party suppliers.
- 4.18 Noncompliance Fee: In the event the Franchisee is in noncompliance with clause 7, Franchisor, may, in its sole discretion, assess Franchisee the Noncompliance Fee.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchisee must prepare and deliver a statement of gross sales receipts for each week to Bevaris Alliance on or before the Tuesday of the immediately following week. The franchisee must also tender the royalty fee accruing in said week to Bevaris Alliance at that time.
Bevaris Alliance then has three days to either confirm in writing that it agrees with the franchisee's statement or give notice that it does not. If Bevaris Alliance does not agree with the statement, both parties will endeavor to resolve any disputes as soon as practicable. If they cannot resolve the dispute within 14 days of the notice, either party may refer the dispute to an expert for resolution.
Any payment, additional payment, or refund resulting from the expert's decision must be made within 14 days of receipt of the expert's decision by both parties. The royalty fee is separate from sales taxes, which the franchisee must pay at the prevailing rate on the due date for payment or receipt of the relevant invoice from Bevaris Alliance.