Does Bor Restoration currently collect a National Branding Fee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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National Branding Fee
We do not now, but may in the future collect a percentage of your Gross Sales or a fixed dollar figure for national advertising (National Branding Fee). The National Branding Fee will be due at the same time as your Royalty.
The National Branding Fees will be deposited in a separate checking account, savings account, or any other account of our determination (National Branding Account). The National Branding Account is not a trust, and we assume no fiduciary duty in administering it. Any monies not used in any year will be carried to the next year.
We will administer the National Branding Account in our sole discretion. The proceeds may be used for the creation, production, and placement of advertising reasonably intended to benefit some or all franchisees in any local, regional, or national medium, in-house or outside agency costs and commissions, costs associated with the preparation of and presentation of an annual convention, creation, and production of the Internet, video, audio, and written advertisements, for the payment to us of costs related to
administering the National Advertising Account such as reasonable salaries, administrative costs, costs allocated to any conferences, travel expenses, and overhead, and for any other commercially reasonable purpose consistent with this paragraph.
We make no guarantee to you or any other franchisee that advertising expenditures from the National Branding Account will benefit you or any other franchisee directly or on a pro-rata basis. We assume no other direct or indirect liability or obligation to you to collect amounts due to the National Branding Account or for maintaining, directing, or administering the National Branding Account.
Any company-owned Businesses will participate in any national or regional advertising programs on the same basis as franchisee-owned Businesses.
The advertising will be produced by a local, national, or international advertising agency or by us.
We will deliver an annual unaudited financial statement no later than 120 days after our year-end upon your prior written request. The National Branding Account is unaudited.
Once implemented, we reserve the right to increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount after first giving you no less than 60 days' prior written notice.
Source: Item 11 — (FDD pages 22–28)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, Bor Restoration does not currently collect a National Branding Fee. However, they retain the right to implement one in the future. This fee could be a percentage of gross sales or a fixed dollar amount.
If implemented, the National Branding Fee would be due at the same time as the royalty payments. Bor Restoration would deposit these fees into a National Branding Account, which is not considered a trust, and Bor Restoration assumes no fiduciary duty in administering it. Any unspent funds in the account at the end of the year will be carried over to the following year.
Bor Restoration has the sole discretion in administering the National Branding Account. The funds can be used for various advertising-related expenses, including creating and placing advertisements in different media, covering in-house or outside agency costs, and contributing to the annual convention. Bor Restoration also states that they make no guarantee that advertising expenditures from the National Branding Account will directly benefit any franchisee. Bor Restoration also retains the right to increase the National Branding Fee with 60 days prior written notice and can form, change, suspend, merge, or terminate the fee if necessary, ensuring all contributions are used for their intended purpose before closing the account.