Who administers the Regional Advertising Cooperative for Bor Restoration franchisees?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right, upon 30 days prior written notice, to allocate all or a portion of your Local Advertising Fee and National Branding Fee to a regional advertising program (Regional Advertising Cooperative) for the benefit of Businesses located within a market area. We have the right to determine the composition of all market areas included in a particular Regional Advertising Cooperative. If a market region is formed, we will require all franchisees and company-owned and affiliate-owned Businesses located in the region to participate. The Regional Advertising Cooperative will be administered by its contributors. There will be no governing documents. All advertising for the Regional Advertising Cooperative will be prepared by a local, national, or international advertising agency or by us. The Regional Advertising Cooperative will prepare unaudited financial statements and make them available to all Cooperative participants within 120 days of the year-end. We have the right to change, dissolve, reinstate, or merge any Regional Advertising Cooperatives.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Regional Advertising Cooperative will be administered by its contributors. Bor Restoration retains the right to allocate a portion of the franchisee's Local Advertising Fee and National Branding Fee to this cooperative, which is designed to benefit businesses within a specific market area.
If Bor Restoration forms a market region, all franchisees and company-owned or affiliate-owned businesses within that region are required to participate in the Regional Advertising Cooperative. The advertising for the cooperative will be created by a local, national, or international advertising agency, or by Bor Restoration itself.
The Regional Advertising Cooperative will provide unaudited financial statements to all participants within 120 days of the year-end. Bor Restoration also retains the right to change, dissolve, reinstate, or merge any Regional Advertising Cooperatives, giving them significant control over the structure and existence of these advertising programs.