Does Bevaris Alliance state that the future effects of COVID-19 issues are unknown?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
COVID-19 - In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in Wuhan, China and has since spread to other countries, including the U.S. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, multiple jurisdictions in the U.S. have declared states of emergency. It is anticipated that these impacts will continue for some time. There has been no impact to the Company's operations to date. Future potential impacts to the Company include disruptions or restrictions on the employees ability to work, lack of demand for new franchisees or the franchisee's ability to pay the Company royalties. Changes to the operating environment may also be impacted. Operations include franchise application processing or other areas requiring contact with the franchisee. These changes may increase operating costs. Further impacts may include increased risk on franchisee performance. The future effects of these issues are unknown.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the company acknowledges the COVID-19 pandemic and its potential impacts. The document states that the pandemic originated in Wuhan, China, in December 2019 and was characterized as such by the World Health Organization on March 11, 2020. It is anticipated that these impacts will continue for some time. To date, Bevaris Alliance states that there has been no impact to the Company's operations.
However, Bevaris Alliance foresees potential future impacts, including disruptions or restrictions on employees' ability to work, a lack of demand for new franchisees, or franchisees' ability to pay royalties. Changes to the operating environment, such as franchise application processing, may also be impacted, potentially increasing operating costs. Additionally, there may be an increased risk to franchisee performance.
Ultimately, the 2024 FDD explicitly states that "the future effects of these issues are unknown." This statement indicates that while Bevaris Alliance has identified potential risks and impacts related to COVID-19, the full extent and duration of these effects are uncertain and cannot be predicted with certainty. This is a common disclosure in franchise documents during and immediately after the pandemic, as the long-term economic and operational consequences were difficult to assess.