Where does the Bor Restoration franchise agreement discuss advertising and advertising fees?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ls to past and present clients 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.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the franchise agreement addresses advertising and advertising fees primarily in the context of a National Branding Fee. While Bor Restoration does not currently collect this fee, they retain the right to implement it in the future.
The National Branding Fee, if implemented, would be a percentage of the franchisee's Gross Sales or a fixed dollar amount. This fee would be due at the same time as the franchisee's Royalty payments. Bor Restoration will deposit these fees into a National Branding Account, which they will administer at their discretion. The funds in this account can be used for various advertising purposes, including local, regional, or national advertising campaigns, in-house or outside agency costs, convention-related expenses, and the creation of online, video, and audio advertisements.
It is important to note that the National Branding Account is not a trust, and Bor Restoration does not assume any fiduciary duty in administering it. Any unspent funds in the account from one year will be carried over to the next. Additionally, the franchise agreement defines "Local Advertising Fee" and "National Branding Account" with reference to Article 3, suggesting further details about advertising obligations and the handling of advertising funds are likely specified within that article.