What is the total low-range estimated initial investment for a Bevaris Alliance franchise?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount Est. Low Range | Amount Est. High Range | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Franchise Fee for a single franchise (Note 1) | $25,000 | $25,000 | Lump sum | On signing franchise agreement | Us |
| Rebate (3 months) | $1,500 | $12,000 | Installment | Monthly | Client |
| POS/Back Office | $500 | $5,000 | Lump sum | As incurred | Approved |
| System | vendors | ||||
| Initial Inventory (see Note 2) & Office Supplies | $8,000 | $150,000 | Lump sum | As incurred | Approved vendors |
| Licenses & Permits | $1,000 | $5,000 | Lump sum | Issuance | Others |
| Professional Fees | $1,000 | $50,000 | Lump sum | Invoice | Your advisors |
| Insurance (quarterly) | $250 | $50,000 | Lump sum | Invoice | Your insurance company |
| Training Expenses | $5,000 | $20,000 | Lump sum | Prior to training | Third parties |
| (see Note 3) | |||||
| Additional Funds/ | $30,000 | $100,000 | As incurred | As incurred | Third parties |
| Working Capital | |||||
| (see Note 4) | |||||
| Kitchen Equipment | $5,000 | $75,000 | As incurred | As incurred | Third parties |
| Start-up expenses | $5,000 | $10,000 | As incurred | As incurred | Third parties |
| (see Note 5) | |||||
| Total (see Note 6) | $82,250 | $502,000 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 10–11)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the estimated total initial investment to begin a franchise ranges from $82,250 to $502,000. This total includes various expenses that a franchisee will incur before opening their Bevaris Alliance franchise. These expenses include the franchise fee, rebates, POS/Back Office system costs, initial inventory and office supplies, licenses and permits, professional fees, insurance, training expenses, additional funds/working capital, kitchen equipment, and start-up expenses.
The initial franchise fee is $25,000. Other notable low-range costs include $8,000 for initial inventory and office supplies, $5,000 for training expenses, $30,000 for additional funds/working capital, and $5,000 for kitchen equipment. The document also notes that these are estimates, and Bevaris Alliance cannot guarantee that franchisees will not have to make additional miscellaneous expenditures to properly start their franchise.
The FDD advises prospective franchisees to carefully review these figures with a business advisor before making any decision to purchase the franchise. It also cautions them to allow for inflation, discretionary expenditures, fluctuating interest rates and other costs of financing, and local market conditions, which can be highly variable and can result in substantial, rapid, and unpredictable increases in costs. Franchisees must bear any deviation or escalation in cost from the estimates provided in Item 7 of the FDD or estimates that Bevaris Alliance gives during any phase of the development process.