What is the System Marketing Fund 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.
The Company charges its franchisees a 2% system marketing fund fee to fund the development and expansion of the franchise system which includes advertising and marketing programs. The system marketing reserve fund balance at December 31, 2023 and 2022 is $174,327 and $72,220, respectively.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees are required to pay a system marketing fund fee. This fee is set at 2% of gross sales receipts.
The purpose of this fee is to fund the development and expansion of the Bevaris Alliance franchise system. These funds are specifically allocated to advertising and marketing programs designed to promote the brand and attract customers.
As of December 31, 2023, the system marketing reserve fund balance was $174,327, and on December 31, 2022, it was $72,220. This indicates the total amount of funds collected and reserved for marketing purposes. In addition to the royalty fee there is a 2% system marketing fee.