Under what circumstances will the Indemnity fee for a Bevaris Alliance franchise vary?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remark s |
|---|---|---|---|
| Third Party | Up to $500 per quarter. | Upon invoice. | |
| Quality Assurance | |||
| Audit Fee | |||
| Technology Fee | Will vary under circumstances | As incurred. | Fee for any software licenses used in the ordinary course of business. |
| Franchise Portal | Up to $250 per month. | As incurred. | Fee for Franchise Portal. |
| Fee | (see Note 6) | ||
| Convention Fee | Travel fees and out of pocket expenses but no attendance fee (suggested cost up to $500 per day). | As incurred. | |
| Indemnity | Will vary under circumstances. | As incurred. | You have to reimburse us if we are held liable for claims arising from your Branded Business’s operations. |
| Noncompliance Fee | A $100.00 fee per occurrence. | As incurred | Fee for noncompliance with the Franchise Agreement clause 7. |
| Product or supplier evaluation fee | No fee. | Upon completion of evaluation. | Due if the product or supplier is not approved. |
| Costs and Attorneys’ Fees | Will vary under circumstances. | As incurred by you. | Payable to your attorney for any legal work done to assist you. |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the Indemnity fee will vary under certain circumstances. This fee is incurred when the franchisor, Bevaris Alliance, is held liable for claims arising from the franchisee's Branded Business operations. The franchisee is then responsible for reimbursing Bevaris Alliance for these liabilities. The due date for this fee is 'as incurred.'
In practical terms, this means that if a customer or other third party brings a claim against Bevaris Alliance due to something related to the franchisee's business (e.g., a foodborne illness, a slip-and-fall accident, or a violation of regulations), and Bevaris Alliance is found liable, the franchisee will have to cover the costs. These costs can include legal fees, settlement amounts, and any other expenses incurred by Bevaris Alliance in connection with the claim.
The Indemnity fee is not a fixed amount, and it can vary significantly depending on the nature and severity of the claim. Franchisees should operate their businesses in a way that minimizes the risk of claims and liabilities. Prospective franchisees should seek clarification from Bevaris Alliance regarding what specific situations could trigger this fee and how the amount is determined, as well as what insurance coverage is required to mitigate these potential costs.