When is the National Branding Fee payable 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, currently there is no National Branding Fee. However, if Bor Restoration implements one in the future, it will be payable with the Royalty fee. Bor Restoration may collect a percentage of a franchisee's Gross Sales or a fixed dollar figure to fund national branding events and social media advertising materials.
Bor Restoration will provide franchisees with no less than 60 days' prior written notice before implementing the National Branding Fee or changing it once implemented. The Regional Advertising Cooperative Fee, if applicable, is also payable with the Royalty fee.
It is important for prospective Bor Restoration franchisees to understand that while the National Branding Fee is currently $0, Bor Restoration retains the right to implement and change this fee with 60 days' notice. Franchisees should factor in the potential for this additional cost when evaluating the financial feasibility of the franchise.