Can the Bor Restoration franchise agreement be modified?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| s. Modification of the agreement | 15 and 18 | No modifications generally, but Franchisee Manuals and the System are subject to change. |
| c. Requirements for franchisee to renew or extend | 4 | You must provide notice, you must have no outstanding material defaults or money owed, you must not have had more than three default notices during the initial term or one notice during the Successor Franchise Term, we must not have determined in our Reasonable Business Judgment not to renew, you must sign the then-current Franchise Agreement (which may have terms materially different than those of your current Franchise Agreement) and pay the renewal fee. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 33–35)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the franchise agreement generally cannot be modified. However, the Franchisee Manuals and the System are subject to change. This means that while the core legal agreement you sign is fixed, Bor Restoration can update its operational guidelines and technology.
For a prospective franchisee, this is fairly standard in the franchise industry. The consistency of the franchise agreement protects both the franchisee and Bor Restoration by ensuring everyone operates under the same basic rules. However, the ability of Bor Restoration to update manuals and systems allows them to adapt to changing market conditions, improve efficiency, and incorporate new technologies.
It is important for a potential Bor Restoration franchisee to understand the scope of these changes. While the core agreement remains intact, significant changes to the manuals or system could impact day-to-day operations, required investments in new equipment or software, and overall profitability. Franchisees should inquire about the frequency and types of changes that have been implemented in the past to better understand the potential for future modifications and their impact on the business.
Furthermore, when renewing the franchise agreement, Bor Restoration requires that franchisees sign the then-current Franchise Agreement, which may have terms materially different than those of the current Franchise Agreement. This is an important consideration for franchisees as the terms and conditions of the franchise agreement may change at the time of renewal.