What does the initial franchise fee for Bor Restoration cover?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
The initial franchise fee (IFF) is $44,000. The IFF represents payment for expenses incurred by us in furnishing valuable resources to you, including the Manuals, training, and pre-opening services (Item 11), to pay sales costs and a profit.
You are required to purchase from our approved vendor, an Affiliate, or us your initial package of equipment, tools, and supplies needed to open your Business (Opening Package) that includes air movers, air scrubbers, dehumidifier(s), one or more liquid extractors, mold-remediation equipment, smoke removal equipment including ozone generators, thermal imaging equipment, hand tools, a Microsoft or equivalent computer tablet (Tablet) loaded with the "BOR Software Suite," and other equipment needed to operate the Business for $127,000 (Opening Package Cost). You must pay the Opening Package Cost when you pay your IFF.
You will purchase a license to use the BOR Software Suite from us at the cost of $3,999 (BOR Software Suite Initial License Fee). The BOR Software Suite contains proprietary estimating software and client relationship management (CRM) software.
You will pay us $2,995 as your "Technology Startup Fee," which will be used to set up your landing page on our website.
Source: Item 5 — Initial Fees (FDD pages 9–10)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the initial franchise fee (IFF) is $44,000. This fee covers the expenses Bor Restoration incurs to provide resources to the franchisee. These resources include the manuals, training, and pre-opening services detailed in Item 11 of the FDD. The IFF also contributes to Bor Restoration's sales costs and profit.
In addition to the initial franchise fee, franchisees are required to purchase an initial package of equipment, tools, and supplies for $127,000. This "Opening Package" includes items such as air movers, air scrubbers, dehumidifiers, liquid extractors, mold-remediation equipment, smoke removal equipment (including ozone generators), thermal imaging equipment, hand tools, and a computer tablet loaded with the "BOR Software Suite." Franchisees must also purchase a license to use the BOR Software Suite for $3,999, which includes proprietary estimating software and client relationship management (CRM) software.
Furthermore, franchisees will pay a $2,995 "Technology Startup Fee" to set up a landing page on Bor Restoration's website. These initial investments are essential for starting the Bor Restoration franchise and gaining access to the necessary tools and technology. All fees paid to Bor Restoration or its affiliates are payable in one lump sum, are considered fully earned, and are generally non-refundable, except as stated in Item 5 of the FDD.