Who administers the National Branding Account for Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
We will administer the National Branding Account in our sole discretion. The proceeds may be used for the creation, production, and placement of advertising reasonably intended to benefit some or all franchisees in any local, regional, or national medium, in-house or outside agency costs and commissions, costs associated with the preparation of and presentation of an annual convention, creation, and production of the Internet, video, audio, and written advertisements, for the payment to us of costs related to
administering the National Advertising Account such as reasonable salaries, administrative costs, costs allocated to any conferences, travel expenses, and overhead, and for any other commercially reasonable purpose consistent with this paragraph.
We make no guarantee to you or any other franchisee that advertising expenditures from the National Branding Account will benefit you or any other franchisee directly or on a pro-rata basis. We assume no other direct or indirect liability or obligation to you to collect amounts due to the National Branding Account or for maintaining, directing, or administering the National Branding Account.
Any company-owned Businesses will participate in any national or regional advertising programs on the same basis as franchisee-owned Businesses.
The advertising will be produced by a local, national, or international advertising agency or by us.
We will deliver an annual unaudited financial statement no later than 120 days after our year-end upon your prior written request. The National Branding Account is unaudited.
Once implemented, we reserve the right to increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount after first giving you no less than 60 days' prior written notice.
We intend for the National Branding Fee to be continuous and perpetual, but we have the right to form, change, suspend (and subsequently reinstate), merge, or terminate it if necessary. We will not close the National Branding Account, however, until all contributions and earnings have been used for the purpose for which they were collected.
There will be a franchisee advisory council. The council will be made up of between three and five current franchisees, each of whom is in the top 10% of franchisees in terms of Gross Sales. The council will have advisory powers only. We have the power to form, change, dissolve, and then reinstate the council at any time.
We collected no money for this account for the year ending December 31, 2023.
Source: Item 11 — (FDD pages 22–28)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, BOR Franchising, LLC will administer the National Branding Account in its sole discretion. The funds in this account, which are not held in trust and for which Bor Restoration assumes no fiduciary duty, may be used for various advertising and marketing purposes. These include creating and placing advertisements in local, regional, or national media, covering in-house or outside agency costs and commissions, and funding the annual convention, internet presence, and video, audio, and written advertisements. The funds can also be used to cover Bor Restoration's costs related to administering the account, such as salaries, administrative costs, conference expenses, travel, and overhead.
Bor Restoration does not guarantee that advertising expenditures from the National Branding Account will directly benefit each franchisee on a pro-rata basis. Any unspent funds in the account at the end of a year will be carried over to the next year. Bor Restoration retains the right to modify, suspend, or terminate the National Branding Fee, ensuring that all contributions and earnings are used for their intended purpose before closing the account.
While a franchisee advisory council exists, composed of top-performing franchisees, it holds only advisory powers. Bor Restoration maintains the authority to form, change, dissolve, or reinstate this council at any time. For the year ending December 31, 2023, no money was collected for this account.