What is the Local Advertising Fee used for by Bor Restoration?
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 used for payments to local suppliers, subject to Bor Restoration's approval, and for internet advertising. Bor Restoration may also require franchisees' expenditures to be used in the Regional Advertising Cooperative.
The Local Advertising Fee is the greater of $1,500 or 5% of Gross Sales per month. This fee is incurred as the franchisee spends money on local advertising and other approved avenues.
Bor Restoration retains the right to increase the Local Advertising Fee at any time, but it will not exceed 6% or $2,000 after providing franchisees with at least 60 days' prior written notice. This allows Bor Restoration to adjust the advertising strategy and budget as needed, but it also gives franchisees some predictability in their ongoing expenses.