factual

What happens to the National Branding Account if Bor Restoration terminates it?

Bor_Restoration Franchise · 2024 FDD

Answer from 2024 FDD Document

We intend for the National Branding Fee to be continuous and perpetual, but we have the right to form, change, suspend (and subsequently reinstate), merge, or terminate it if necessary. We will not close the National Branding Account, however, until all contributions and earnings have been used for the purpose for which they were collected.

Source: Item 11 — (FDD pages 22–28)

What This Means (2024 FDD)

According to Bor Restoration's 2024 Franchise Disclosure Document, while Bor Restoration intends for the National Branding Fee to be continuous and perpetual, they have the right to form, change, suspend (and subsequently reinstate), merge, or terminate it if necessary. However, Bor Restoration will not close the National Branding Account until all contributions and earnings have been used for the purpose for which they were collected.

This means that if Bor Restoration decides to terminate the National Branding Account, any funds that have already been collected through the National Branding Fee, along with any earnings those funds have generated, must still be used for national branding and advertising purposes. This protects franchisees by ensuring that the money they contributed is used as intended, even if the overall program is discontinued.

This is a fairly common practice in franchising, as it ensures transparency and accountability in how advertising funds are managed. Prospective Bor Restoration franchisees should be aware that while the National Branding Fee can be changed or terminated, the funds collected must be used for their intended purpose, providing some level of assurance that their contributions will benefit the franchise system.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.