Under what condition must a Bevaris Alliance franchisee reimburse for insurance premiums?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
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- You must reimburse us for premium and other out-of-pocket costs incurred in connection with us procuring insurance on your behalf plus an administrative fee of 10% of the premium, if we choose to procure such insurance.
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, a franchisee must reimburse Bevaris Alliance for insurance premiums if Bevaris Alliance chooses to procure insurance on the franchisee's behalf. This reimbursement covers the premium costs and any other out-of-pocket expenses Bevaris Alliance incurs.
In addition to reimbursing the premium and out-of-pocket costs, the franchisee is also responsible for paying an administrative fee. This fee is calculated as 10% of the total insurance premium. Therefore, the total cost to the franchisee will be the sum of the premium, any associated costs, and the 10% administrative fee.
This arrangement means that Bevaris Alliance has the option to manage insurance procurement for its franchisees. If they exercise this option, the franchisee is obligated to cover all associated costs, including the administrative fee. Franchisees should clarify with Bevaris Alliance the circumstances under which the franchisor would choose to procure insurance on their behalf and whether franchisees have the option to obtain their own insurance coverage independently.