Why would a Bor Restoration franchisee incur an Insurance fee?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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- If you fail to get the insurance required for the Business's operations, we may buy it for you in our discretion. If we do, you will reimburse us for the premiums. We have no formula for determining if this will occur or the amount of such premiums, and as a result, we cannot quote a fee here.
Source: Item 6 — Other Fees (FDD pages 10–15)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee may incur an insurance fee if they fail to obtain and maintain the required insurance coverage for their business operations. In such cases, Bor Restoration has the discretion to purchase the necessary insurance on behalf of the franchisee.
If Bor Restoration exercises this option, the franchisee is then obligated to reimburse Bor Restoration for the insurance premiums paid. The FDD indicates that Bor Restoration does not provide a formula for determining when this might occur or the specific amount of the premiums.
This lack of a predetermined formula means a prospective Bor Restoration franchisee should discuss with the franchisor the typical insurance requirements, potential costs, and circumstances that might lead Bor Restoration to purchase insurance on their behalf. Understanding these factors will help the franchisee budget appropriately and avoid unexpected expenses.