What are the consequences for a Bor Restoration franchisee if they become insolvent?

Based on the 2024 Franchise Disclosure Document, the document does not explicitly detail the consequences for a Bor Restoration franchisee if they become insolvent. However, the FDD does state that Bor Restoration conducts initial and ongoing credit and criminal background checks on franchisees, and that a material change in a franchisee's credit status may result in the termination of their franchise.

While the FDD does not define "material change," it indicates that Bor Restoration monitors franchisees' credit history throughout the term of the franchise agreement. This suggests that significant financial issues, such as insolvency, could potentially trigger a review by the franchisor. The Credit and Criminal Background Check Release Form included in the FDD allows Bor Restoration to access a franchisee's credit history from credit reporting agencies both at the time of application and during the franchise term.

To fully understand the consequences of insolvency, prospective Bor Restoration franchisees should ask the franchisor for specific details about the conditions under which a franchise agreement could be terminated due to financial instability. This includes clarifying what constitutes a "material change" in credit status and what steps a franchisee can take to address financial difficulties before they lead to termination.