When is the Local Advertising Fee due for a Bor Restoration franchise?
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 written notice. | |
| National Branding Fee | Currently, none. | Payable with Royalty. | We may, in the future, collect a percentage of your Gross Sales or a fixed dollar figure to fund national branding events and social media advertising materials. We will give you no less than 60 days prior written notice before implementing this fee or, once implemented, before changing this fee. Payable to us. |
| Regional Advertising Cooperative Fee | Currently, none. If a Regional Advertising Program is established, you may be required to contribute a specified part of your Local Advertising Fee and National Branding Fee. | Payable with Royalty. | Payable to the cooperative. We have not determined any formula for calculating the percentage of your Local Advertising Fee that would be paid to the cooperative. |
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 franchisee pays local suppliers directly, subject to Bor Restoration's approval, as the advertising expenses arise.
The Local Advertising Fee is the greater of $1,500 or 5% of Gross Sales per month. This fee is used for local advertising and internet advertising, as well as potential contributions to a Regional Advertising Cooperative.
Bor Restoration retains the right to increase the Local Advertising Fee at any time, but it will not exceed 6% or $2,000. Bor Restoration will provide no less than 60 days prior written notice before implementing such an increase. If a Regional Advertising Program is established, a portion of the Local Advertising Fee and National Branding Fee may be required to be contributed to the cooperative.