When is the System Marketing Fund Fee due for a Bevaris Alliance franchise?

According to the 2024 FDD, Bevaris Alliance franchisees are required to pay a 2% system marketing fund fee. This fee is calculated based on the franchisee's weekly gross sales receipts. Royalty revenue from franchisees is primarily based on 10.0% of the franchisee's weekly gross sales receipts. The FDD does not specify the exact due date or frequency of payment for this fee, only that it is based on weekly gross sales.

As the 2% system marketing fund fee is tied to the franchisee's weekly gross sales, it is likely collected on a regular basis, such as weekly or monthly, to coincide with royalty payments. This structure ensures that the marketing fund is continuously replenished, allowing Bevaris Alliance to invest in advertising and marketing programs to benefit the entire franchise system.

Prospective franchisees should clarify the exact payment schedule and method for the system marketing fund fee with Bevaris Alliance during their due diligence. Understanding the timing of these payments is crucial for managing cash flow and ensuring compliance with the franchise agreement. It would be prudent to confirm whether the fee is collected alongside royalty payments or if it follows a different schedule.