When is the Late Fee payable to Bor Restoration, and to which fees does it apply?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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| TYPE OF FEE (Note 1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Opening Package Consumables Replacement | As incurred. | As incurred. | See Note 6. |
| System | As incurred. | As incurred. | See Note 7. |
| Modification; New | |||
| Goods, Services, | |||
| Fees, or Technology | |||
| Client Service Fee | All costs incurred by us in assisting your Clients, including our then-current daily "Client Service Fee," that now is $750. | As incurred. | See Note 8. |
| Temporary | Currently, $1,500 per day plus our travel, room, and board. | Each month it applies. | See Note 9. |
| Management Fee | |||
| Indemnification and | Will vary. | As incurred. | You have to reimburse us if we are held liable for any claims arising from your Business, including any costs we incur to enforce the Franchise Agreement. Payable to us. |
| Cost of | |||
| Enforcement | |||
| Insurance | Will vary. | As incurred. | For your required insurance (Item 8). |
| Late Fee | Currently, $150 per month per fee that is paid late. | As incurred. | Note 10. |
| Default Interest for | Currently, 15% per annum, compounded monthly. | As incurred. | Note 10. |
| Late Payments | |||
| Report Late Fee | Currently, $50 per day. | As incurred. | Note 10. |
| Audit Fees | Currently, $1,500 plus our costs and expenses, including any accountant's fee, travel, room and board, and, if applicable, attorney's fees. | As incurred. | Payable to us for underreporting or for any other reason permitted under the Franchise Agreement. We may increase this fee at any time and in any amount after giving you no less than 60 days' prior written notice. |
| Approval of New or | Currently, none. | As incurred. |
Source: Item 6 — Other Fees (FDD pages 10–15)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Late Fee, currently set at $150 per month per fee, is payable as incurred. This means that the fee is charged if payments are not made on time.
The Late Fee applies specifically if a franchisee fails to pay the Royalty National Branding Fee on time due to under-reporting or another breach for which the fee can be collected. It is important to note that the Late Fee applies to each separate fee that is paid late, meaning that multiple late fees could be incurred in a single month if multiple payments are delinquent.
Bor Restoration retains the right to increase the Late Fee at any time, but they must provide franchisees with no less than 60 days' prior written notice before implementing any such increase. This allows franchisees some time to adjust their financial planning accordingly. In addition to the Late Fee, default interest is payable on late payments, underreported payments, or as otherwise described in the Franchise Agreement.