factual

Is the Technology Fee payable by a Bevaris Alliance franchisee to the Franchisor?

Bevaris_Alliance Franchise · 2024 FDD

Answer from 2024 FDD Document

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System Marketing Fund Fees: 2% of the Gross Sales Receipts payable by the Franchisee to the Franchisor in accordance with clause 4.4.

Technology Fee: Fees established from time to time by Franchisor for various technology related services such as help desk fees, support of the Global Payment Services (GPSpay) system, other technology services or systems of Franchisor, licensing or user-based fees for a franchise portal or benchmarking platform, password protected franchisee portal, and website and social media platform development. Technology Fees may be specified in the Manual.

Term: the Initial Term of this agreement and any Renewed Term under clause 3.

Source: Item 23 — RECEIPT (FDD pages 22–88)

What This Means (2024 FDD)

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee is required to pay a Technology Fee to the franchisor. The Technology Fee covers various technology-related services. These services include help desk support, support of the Global Payment Services (GPSpay) system, other technology services or systems provided by Bevaris Alliance, licensing or user-based fees for a franchise portal or benchmarking platform, access to a password-protected franchisee portal, and website and social media platform development. The specific details of the Technology Fee may be further outlined in the Bevaris Alliance manual.

Bevaris Alliance outlines several other fees payable by the franchisee. These include the Initial Fee, Franchise Portal Fee, Royalty Fee, System Marketing Fund Fee, Transfer Fee, Mystery Shopper Program Fee, and Third-Party Quality Assurance Audit Fee. The Royalty Fee is 10% of the Gross Sales Receipts, and the System Marketing Fund Fees are 2% of the Gross Sales Receipts.

Fees such as the Technology Fee are common in franchising, as they allow the franchisor to maintain and improve the technological infrastructure that supports the franchise system. For a prospective Bevaris Alliance franchisee, it is important to understand the amount and frequency of the Technology Fee, as well as the specific services and support it covers, to accurately budget for ongoing operational costs.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.