Besides Bor Restoration and its affiliates, can the principals of Bor Restoration own interest in any other supplier?

According to Bor Restoration's 2024 Franchise Disclosure Document, the principals of Bor Restoration are generally restricted from having ownership interests in suppliers other than Bor Restoration and its affiliates. The FDD specifies that, except for goods and services that franchisees must purchase from Bor Restoration or its affiliates, the principals of Bor Restoration own no interest in any other supplier. Bor Restoration and its affiliates are also generally not approved suppliers, except as specifically stated in the FDD.

This restriction aims to prevent potential conflicts of interest and ensure fair dealings between Bor Restoration franchisees and suppliers. By limiting the principals' ownership in other suppliers, Bor Restoration seeks to maintain impartiality in the selection and approval of vendors, theoretically ensuring that franchisees receive goods and services based on merit rather than personal gain.

However, the FDD also indicates that Bor Restoration may receive rebates and material benefits from vendors with whom franchisees are required to do business. While Bor Restoration may, at its sole discretion, share some of these rebates with franchisees, this arrangement could still create an indirect financial incentive for Bor Restoration to favor certain suppliers.

Prospective franchisees should carefully consider these provisions and inquire about the specific criteria Bor Restoration uses to select and approve suppliers. Understanding the potential financial relationships between Bor Restoration and its vendors can help franchisees assess whether the supplier arrangements are genuinely in their best interest.