What is the 'National Branding Fee' for Bor Restoration, and when is it due?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
s and prospects. You are responsible for setting up the campaign with a Constant Contact representative. We must approve the content of any newsletters in the same manner as we approve other Local Advertising.
c. National Branding Fee
- i. We do not now, but may in the future collect a percentage of your Gross Sales or a fixed dollar figure for national advertising (National Branding Fee). The National Branding Fee will be due at the same time as your Royalty.
- ii. The National Branding Fees will be deposited in a separate checking account, savings account, or any other account of our determination (National Branding Account). The National Branding Account is not a trust, and we assume no fiduciary duty in administering it. Any monies not used in any year will be carried to the next year.
- © 2024 All rights reserved BOR Franchising, LLC Gen 3-30-24 19 iii. We will administer the National Branding Account in our sole discretion. The proceeds may be used for the creation, production, and placement of advertising reasonably intended to benefit some or all franchisees in any local, regional, or national medium, in-house or outside agency costs and commissions, costs associated with the preparation of and presentation of an annual convention, creation, and production of the Internet, video, audio, and written advertisements, for the payment to us of
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costs related to administering the National Advertising Account such as reasonable salaries, administrative costs, costs allocated to any conferences, travel expenses, and overhead, and for any other commercially reasonable purpose consistent with this paragraph.
- iv. We make no guarantee to you or any other franchisee that advertising expenditures from the National Branding Account will benefit you or any other franchisee directly or on a pro-rata basis.
- v. We assume no other direct or indirect liability or obligation to you to collect amounts due to the National Branding Account or for maintaining, directing, or administering the National Branding Account.
- vi. The advertising will be produced by a local, national, or international advertising agency or by us.
- vii. Upon your prior written request, we will make an annual unaudited financial statement available no later than 120 days after our year-end.
- viii. Once implemented, we reserve the right to increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount after giving you no less than 60 days' prior written notice.
- ix.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the franchisor does not currently collect a National Branding Fee, but may do so in the future. If implemented, the National Branding Fee will either be a percentage of the franchisee's Gross Sales or a fixed dollar figure. This fee would be due at the same time as the franchisee's Royalty payments.
Bor Restoration will deposit these fees into a National Branding Account, which is not a trust, and Bor Restoration assumes no fiduciary duty in administering it. Any funds not used in a given year will be carried over to the next year. Bor Restoration has sole discretion over administering the National Branding Account, and the proceeds may be used for various advertising and administrative costs that benefit franchisees.
There is no guarantee that advertising expenditures from the National Branding Account will directly benefit any specific franchisee or be distributed on a pro-rata basis. Bor Restoration also assumes no direct or indirect liability for collecting amounts due to the National Branding Account or for managing the account. The advertising itself may be produced by a local, national, or international advertising agency, or by Bor Restoration itself.
Bor Restoration reserves the right to increase the National Branding Fee by any percentage of Gross Sales or fixed dollar amount, provided they give franchisees at least 60 days' prior written notice. While Bor Restoration intends for the National Branding Fees to be continual and perpetual, they retain the right to form, change, suspend (and subsequently reinstate), merge, or terminate the fee if necessary, ensuring that all contributions and earnings are used for their intended purpose before closing the National Branding Account.