Where will Bor Restoration deposit the National Branding Fees?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
We intend for the National Branding Fee to be continuous and perpetual, but we have the right to form, change, suspend (and subsequently reinstate), merge, or terminate it if necessary. We will not close the National Branding Account, however, until all contributions and earnings have been used for the purpose for which they were collected.
Source: Item 11 — (FDD pages 22–28)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the National Branding Fees will be deposited into what Bor Restoration determines to be a separate checking account, savings account, or any other account (National Branding Account). Bor Restoration emphasizes that this National Branding Account is not a trust, and they do not assume any fiduciary duty in administering it. Any funds that are not used in a given year will be carried over to the next year.
Bor Restoration retains sole discretion over the administration of the National Branding Account. The funds may be used for various advertising-related activities, including the creation, production, and placement of advertising intended to benefit franchisees at the local, regional, or national level. These funds can also cover in-house or outside agency costs and commissions, costs associated with the annual convention, and the creation and production of internet, video, audio, and written advertisements. Additionally, the funds may be used to cover the costs of administering the National Advertising Account, such as salaries, administrative costs, conference-related expenses, travel expenses, and overhead, as well as any other commercially reasonable purpose consistent with the agreement.
Bor Restoration does not guarantee that advertising expenditures from the National Branding Account will directly benefit any specific franchisee or on a pro-rata basis. Furthermore, Bor Restoration assumes no direct or indirect liability or obligation to collect amounts due to the National Branding Account or for maintaining, directing, or administering the account. Company-owned businesses will participate in national or regional advertising programs on the same basis as franchisee-owned businesses. The advertising will be produced either by Bor Restoration or by a local, national, or international advertising agency.
Bor Restoration will provide an annual unaudited financial statement regarding the National Branding Account no later than 120 days after their year-end, upon a franchisee's prior written request. Bor Restoration also reserves the right to increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount, provided they give franchisees no less than 60 days' prior written notice. While Bor Restoration intends for the National Branding Fee to be continuous and perpetual, they retain the right to form, change, suspend (and subsequently reinstate), merge, or terminate it if necessary, ensuring that all contributions and earnings are used for their intended purpose before the account is closed.