What are 'Client Service Fees' for a Bor Restoration franchisee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
a. You agree to strictly follow the System, the Franchisee Manuals, and other procedures, forms, and obligations we deliver from time to time.
- b. You agree to comply with all covenants and duties placed upon you by this Franchise Agreement.
- c. You will give prompt, courteous, and efficient service to all Clients.
- d. If one of your Clients complains to us and we reasonably determine that it is necessary to service such Client directly, you must reimburse us for all of our costs in doing so and pay us our daily Client Service Fee.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a 'Client Service Fee' refers to the costs and fees incurred if a client complains and Bor Restoration deems it necessary to directly provide services to that client.
If Bor Restoration needs to directly service a client due to a complaint, the franchisee is obligated to reimburse Bor Restoration for all associated costs. Additionally, the franchisee must pay Bor Restoration's daily Client Service Fee. Bor Restoration retains the right to increase this Client Service Fee without any limitations. However, Bor Restoration will provide a 60-day notice before collecting any new fee amount.
This policy means that Bor Restoration franchisees must prioritize excellent customer service to avoid complaints that could lead to the franchisor stepping in and levying these fees. The potential for uncapped increases in the Client Service Fee introduces a degree of financial uncertainty for franchisees, making it crucial to maintain high service standards and address client concerns promptly. Franchisees should factor in the potential for these fees when assessing their operational costs and profitability.