When is the Bor Restoration Local Advertising Fee due?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| (Note 1) Local Advertising | The greater of $1,500 or | As incurred. | You pay local suppliers, subject to our |
| Fee | 5% of Gross Sales per month. | approval. The Local Advertising Fee will also be used for internet advertising (Item 11). We may require your expenditures to be used in the Regional Advertising Cooperative. We may increase this amount at any time to no more than 6% or $2,000 after first giving you no less than 60 days prior writt |
Source: Item 6 — Other Fees (FDD pages 10–15)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the Local Advertising Fee is due as incurred. This means that the fee is not paid on a fixed schedule like a monthly royalty, but rather when the expenses related to local advertising are actually incurred.
The Local Advertising Fee is the greater of $1,500 or 5% of Gross Sales per month. Bor Restoration franchisees pay local suppliers directly, but these suppliers are subject to the franchisor's approval. The Local Advertising Fee may be used for internet advertising, and Bor Restoration may require franchisees' expenditures to be used in the Regional Advertising Cooperative.
Bor Restoration retains the right to increase the Local Advertising Fee, but it is limited to a maximum of 6% of gross sales or $2,000 per month. Bor Restoration must provide franchisees with no less than 60 days prior written notice before increasing the Local Advertising Fee.