factual

When are 'Client Service Fees' incurred by a Bor Restoration franchisee?

Bor_Restoration Franchise · 2024 FDD

Answer 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. We have the right to increase the Client Service Fee by any amount without limitation. We will notify you 60 days before a new fee is to be collected.
  • e. You understand and agree that the Business's telephone number(s), URLs, blogs, vlogs, social media presence, and email addresses constitute a part of the Proprietary Information, and each is subject to the restrictions of this Franchise Agreement.

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' is incurred when a client of the franchisee complains to Bor Restoration, and Bor Restoration determines it is necessary to directly service that client. In such cases, the franchisee is responsible for reimbursing Bor Restoration for all costs incurred in servicing the client, in addition to paying the daily Client Service Fee.

Bor Restoration retains the right to increase the Client Service Fee without limitation. However, Bor Restoration will notify franchisees 60 days before a new fee is to be collected. This fee covers Bor Restoration's costs, including expenses, accountant and attorney fees, travel, room, and board, plus a fixed fee payable to Bor Restoration.

This policy means that Bor Restoration franchisees must prioritize excellent customer service to avoid complaints that could lead to the franchisor stepping in and charging fees. Franchisees should also stay informed of any potential fee increases by paying attention to notices from Bor Restoration.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.