What is the maximum amount the Bor Restoration Local Advertising Fee can be increased to?
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. Paya |
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 the greater of $1,500 or 5% of Gross Sales per month. Bor Restoration can increase this amount to a maximum of 6% of gross sales or $2,000. Bor Restoration must provide at least 60 days prior written notice before increasing the Local Advertising Fee.
The Local Advertising Fee is used for 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.
Prospective franchisees should consider that while the current National Branding Fee is none, Bor Restoration may, in the future, collect a percentage of gross sales or a fixed dollar figure for national branding events and social media advertising materials. Bor Restoration will provide no less than 60 days prior written notice before implementing or changing this fee.