Is the Bor Restoration franchisee's choice of local suppliers subject to approval?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| (Note 1) Local Advertising | The greater of $1,500 or | As incurred. | You pay local suppliers, subject to our |
| Fee | 5% of Gross Sales per month. | approval. The Local Advertising Fee will also be used for internet advertising (Item 11). We may require your expenditures to be used in the Regional Advertising Cooperative. We may increase this amount at any time to no more than 6% or $2,000 after first giving you no less than 60 days prior writt |
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's choice of local advertising suppliers is subject to approval by Bor Restoration. The franchisee is responsible for paying local suppliers directly for local advertising expenses.
The amount spent on local advertising must be the greater of $1,500 or 5% of Gross Sales per month. Bor Restoration may also require that these expenditures be used in the Regional Advertising Cooperative.
Bor Restoration retains the right to increase the required local advertising expenditure to a maximum of 6% of Gross Sales or $2,000 per month after providing the franchisee with at least 60 days' written notice. This approval requirement and potential for increased spending are important factors for prospective franchisees to consider when evaluating the financial obligations of the franchise.