What happens if a Bor Restoration franchisee has complaints against their business?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| AGREEMENT | misuse of the Marks or Proprietary Information, breach of curable covenants more than three times during the Initial Term or one time during Successor Franchise Term, illegal transfer, violation of laws applying to business, criminal or civil convictions, material misrepresentations, failure to obtain permission, failure to pay taxes, underreporting, complaints against the business, disparagement of us, failure to add new goods or Services, other violations of Franchise Agreement that contain their own cure provisions, failure to add new goods, Services or technology. We have the right to manage the Business temporarily. |
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, complaints against a franchisee's business can lead to termination of the franchise agreement. Specifically, under the summary of the Franchise Agreement, 'complaints against the business' is listed as a cause for termination. Bor Restoration also has the right to manage the business temporarily.
This means that if Bor Restoration receives a significant number of complaints or complaints of a serious nature about a franchisee's operations, Bor Restoration has grounds to terminate the franchise agreement. This could result in the franchisee losing their business and the rights to operate under the Bor Restoration brand. It is important to note that the FDD does not specify the number or nature of complaints that would trigger termination, leaving this determination to Bor Restoration's discretion.
Prospective franchisees should carefully consider the potential impact of customer complaints on their franchise and ensure they have systems in place to address and resolve complaints promptly and effectively. Franchisees should also maintain open communication with Bor Restoration to address any concerns or issues that may arise. It is also important to note that the Franchisee can cure defaults under the Franchise Agreement, except those described in section (h).