For Bor Restoration, what are some examples of how the proceeds from the National Branding Account may be used?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
s and prospects. You are responsible for setting up the campaign with a Constant Contact representative. We must approve the content of any newsletters in the same manner as we approve other Local Advertising.
c. National Branding Fee
- i. 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.
- ii. 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.
- © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 19 iii. 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
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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.
- iv. 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.
- v. 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.
- vi. The advertising will be produced by a local, national, or international advertising agency or by us.
- vii.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the National Branding Account is funded by National Branding Fees, which Bor Restoration may collect as a percentage of gross sales or as a fixed dollar figure. These fees are due at the same time as the royalty payments. The funds within this account are not held in trust, and Bor Restoration assumes no fiduciary duty in administering it. Any unspent funds from one year are carried over to the next. Bor Restoration has sole discretion over how the National Branding Account is administered.
The proceeds from the National Branding Account may be used for various advertising and administrative purposes. These include the creation, production, and placement of advertising in any local, regional, or national medium. Funds may also cover in-house or outside agency costs and commissions, as well as costs associated with preparing and presenting an annual convention. Additionally, the account can fund the creation and production of internet, video, audio, and written advertisements.
Furthermore, the National Branding Account can be used to cover costs related to administering the account itself. This includes reasonable salaries, administrative costs, expenses allocated to conferences, travel expenses, and overhead. The funds can also be used for any other commercially reasonable purpose consistent with the guidelines provided in the FDD. 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. Franchisees should be aware that Bor Restoration can increase the National Branding Fee with 60 days' prior written notice and has the right to modify or terminate the National Branding Fee if necessary, ensuring all contributions are used for their intended purpose before closure.