When is the Initial Franchise Fee (IFF) due for a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. The IFF is stated in Exhibit 1 and is due when you sign this Franchise Agreement. You acknowledge that the IFF represents payment for the training and the initial grant of rights to use the Marks and System and that we have earned the IFF in full upon receipt.
- b. At the time you pay the IFF, you must also,
- i. purchase the Opening Package;
- b. At the time you pay the IFF, you must also,
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Initial Franchise Fee (IFF) is due when you sign the Franchise Agreement. The FDD specifies that this fee compensates Bor Restoration for the initial grant of rights to use their Marks and System, as well as for the training provided to the franchisee. Bor Restoration considers the IFF fully earned upon receipt, meaning it is non-refundable.
In addition to paying the IFF, the franchisee must also purchase the Opening Package at the time of payment. This package likely includes essential materials, equipment, and resources necessary to begin operating the Bor Restoration franchise. Franchisees should carefully review the contents and costs of the Opening Package to fully understand the initial investment required.
Prospective Bor Restoration franchisees should be aware that the IFF is non-refundable and is required upfront when signing the Franchise Agreement. This highlights the importance of conducting thorough due diligence and carefully evaluating the franchise opportunity before committing to the agreement. Understanding the full scope of the initial investment, including the IFF and the Opening Package, is crucial for making an informed decision.