What is the Royalty Fee for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
Royalty revenue from franchisees is primarily based on 10.0% of the franchisee's weekly gross sales receipts and is recognized in
the period in which the related service or sale occurs. In addition to the royalty fee there is a 2% system marketing fee.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the royalty fee is 10.0% of the franchisee's weekly gross sales receipts. This fee is a recurring payment that franchisees must make to the franchisor in exchange for the continued use of the Bevaris Alliance brand name, operating system, and other support services.
In addition to the royalty fee, Bevaris Alliance franchisees must also pay a 2% system marketing fee. This fee is used to fund advertising and marketing programs for the benefit of the entire franchise system. The system marketing reserve fund balance as of December 31, 2023, was $174,327.
For a prospective franchisee, these ongoing fees represent a significant cost of doing business. It is important to carefully consider these fees when evaluating the financial viability of a Bevaris Alliance franchise. Franchisees should factor these percentages into their financial projections to accurately estimate their potential earnings.