What is the minimum amount a Bor Restoration franchisee must spend on initial advertising?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ure_0.jpeg)
| Type of Expenditure | Amount | Method of | When Due | To Whom Payment is to be |
|---|---|---|---|---|
| (Note 1) | Payment | Made | ||
| IFF | $44,000 | Lump sum | At the signing of Franchise Agreement. | Us |
| Opening Package | $127,000 | Lump-sum | At the signing of the Franchise Agreement. | An Approved Vendor, An Affiliate, or Us. |
| BOR Software | $3,999 | Lump-sum | At the signing of the Franchise Agreement. | Us. |
| Technology | $2,995 | Lump-sum | At the signing of the Franchise Agreement. | Us. |
| Startup Fee | ||||
| Rent and Rental | $0 to $300 | As incurred | Before opening. | Landlord. |
| Improvements | ||||
| (Note 2) | ||||
| Office Furniture, | $0 to $300 | As incurred | Before opening. | Vendors. |
| Fixtures, and | ||||
| Equipment (Note | ||||
| 2) | ||||
| Microsoft Office | $174 | As incurred | Before opening. | Approved Vendor. |
| 365 and Constant | ||||
| Contact (Note 3) | ||||
| Initial Training Expenses (Note 4) | $1,000 to $2,500 | As incurred | Before training. | Airlines, Hotels, Restaurants. |
| Business Vehicle and Wrap (Note 5) | $1,000 to $35,000 | As incurred | Before opening. | Vendor. |
| Business Vehicle | $0 to $1,500 | As incurred | Before opening. | State or Local Government. |
| Tax, Title, and | ||||
| License (Note 5) | ||||
| Business Vehicle | $500 to $1,000 | As incurred | Before opening. | Insurer. |
| Insurance (Note 5) | ||||
| Grand Opening Cost (Note 6) | $500 | As incurred | Before opening. | Advertiser. |
| Insurance and | $4,750 to $5,200 | As incurred | When incurred. | Professionals. |
| Professional | ||||
| Services (Note 7) | ||||
| Additional Funds - 3 months (Note 8) | $9,000 to $15,000 | As incurred | When incurred. | Used for your personal expenses as needed. |
| TOTAL (Note 9) | $194,918 to $239,468 |
Notes
- Fees payable to third parties may or may not be refundable depending on their policies over which we have no control.
Source: Item 7 — (FDD pages 15–18)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees are required to spend a minimum of $500 on grand opening advertising. This expenditure is expected to be incurred before opening and is paid to the advertiser. This initial advertising spend is intended to occur within the first three months of the franchisee's opening date.
This minimum advertising spend is relatively low compared to other franchise systems, where initial marketing requirements can range from several thousand to tens of thousands of dollars. The lower initial advertising cost may make Bor Restoration more accessible to franchisees with limited capital. However, franchisees should consider whether this minimum amount is sufficient to effectively launch their business in their local market.
Prospective Bor Restoration franchisees should carefully consider their local market conditions and competitive landscape to determine if the minimum required advertising spend is adequate. They may want to discuss with existing franchisees and the franchisor what advertising strategies and budgets have proven successful in similar markets. It is important to note that while $500 is the minimum, franchisees have the option to spend more on advertising if they deem it necessary to achieve their business goals.