Are the fees payable to Bor Restoration or its affiliates refundable?

According to Bor Restoration's 2024 Franchise Disclosure Document, fees paid to Bor Restoration or its affiliates are generally non-refundable, with a specific exception noted in Item 5 of the FDD. This means that the initial franchise fee (IFF) of $44,000, the opening package fee of $127,000 (payable to an approved vendor, an affiliate, or Bor Restoration), the BOR software fee of $3,999, and the technology fee of $2,995 are all non-refundable unless otherwise stated in Item 5. These fees are payable in one lump sum at the signing of the Franchise Agreement.

Prospective franchisees should carefully review Item 5 of the FDD to understand the specific conditions under which any of these fees might be refundable. It is crucial to understand that third-party fees, such as those paid to landlords, airlines, hotels, restaurants, advertisers, insurers, professionals, and vendors, may or may not be refundable, depending on their individual policies, which Bor Restoration has no control over. This lack of control means franchisees must independently verify the refund policies of these third parties.

Given the significant investment required upfront, understanding the refund policies is vital. The non-refundable nature of the initial fees underscores the importance of thorough due diligence before signing the Franchise Agreement. Potential franchisees should seek clarification from Bor Restoration regarding Item 5 and consult with legal and financial advisors to fully understand the financial implications. This proactive approach can help mitigate potential financial risks associated with the franchise investment.