What is the initial franchise fee (IFF) for a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
IAL FEES**
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.
We will deliver the BOR Application ("Application" - Exhibit H to this FDD) to you when you receive this FDD. No earlier than 14 calendar days after the date that you sign and return the Receipt (the last page of this FDD) (or after any other date that may be defined by state law), you must complete and return the Application and must pay us the Application Fee of $1,000. If we disapprove of your Application, the fee will be fully returned. If we accept your Application, you qualify for a franchise award and must sign the Franchise Agreement within 90 days. If you do not sign the Franchise Agreement within that time, your Application Fee will become non-refundable. If you sign the Franchise Agreement at any time, your Application Fee is credited against the IFF.
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 ou
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 compensates Bor Restoration for providing resources such as manuals, training, and pre-opening services, as well as covering sales costs and profit.
In addition to the IFF, prospective franchisees must also pay an Application Fee of $1,000 when submitting their BOR Application. This fee is fully refundable if Bor Restoration disapproves the application. If the application is accepted, the $1,000 is credited towards the IFF. However, the Application Fee becomes non-refundable if the Franchise Agreement is not signed within 90 days of acceptance.
Furthermore, franchisees are required to purchase an initial package of equipment, tools, and supplies for $127,000, which includes items like air movers, air scrubbers, dehumidifiers, 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 and pay a $2,995 Technology Startup Fee for setting up a landing page on Bor Restoration's website. These fees, along with the IFF, represent the initial financial commitment required to start a Bor Restoration franchise.