When is a Bor Restoration franchisee required to pay a 'Client Service Fee'?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- d. If one of your Clients complains to us and we reasonably determine that it is necessary to service such Client directly, you must reimburse us for all of our costs in doing so and pay us our daily Client Service Fee. We have the right to increase the Client Service Fee by any amount without limitation. We will notify you 60 days before a new fee is to be collected.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a franchisee is required to pay a Client Service Fee if a client complains to Bor Restoration, and Bor Restoration reasonably determines that it is necessary to service the client directly. In this case, the franchisee must reimburse Bor Restoration for all costs incurred in servicing the client and also pay the daily Client Service Fee.
The FDD states that Bor Restoration has the right to increase the Client Service Fee by any amount without limitation. Bor Restoration will notify the franchisee 60 days before a new fee is to be collected.
This means that as a Bor Restoration franchisee, you could face unexpected costs if client service issues arise and Bor Restoration steps in to resolve them. The lack of limitation on fee increases means these costs could potentially be significant, so it's important to provide excellent customer service to avoid triggering this clause. It would be prudent to inquire with Bor Restoration about the typical range and frequency of these fees to better understand the potential financial impact.