If Bor Restoration implements a National Branding Fee, when will it be due?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- i. We do not now, but may in the future collect a percentage of your Gross Sales or a fixed dollar figure for national advertising (National Branding Fee). The National Branding Fee will be due at the same time as your Royalty.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, if Bor Restoration decides to implement a National Branding Fee, it will be due at the same time as the franchisee's Royalty payments.
This means that a Bor Restoration franchisee should budget for this potential fee alongside their ongoing royalty obligations. The FDD also states that Bor Restoration may increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount after giving franchisees no less than 60 days' prior written notice.
While the National Branding Fee is intended to be continual and perpetual, Bor Restoration retains 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. Franchisees should be aware that Bor Restoration makes no guarantee that advertising expenditures from the National Branding Account will benefit any franchisee directly or on a pro-rata basis.