factual

Is Bor Restoration obligated to pay a Bor Restoration franchisee for an Innovation?

Bor_Restoration Franchise · 2024 FDD

Answer from 2024 FDD Document

  • c. We are not obligated to pay you for the Innovation, though we reserve the right to do so without incurring the obligation to pay you or any other franchisee for any future Innovation.

Source: Item 23 — Receipts (FDD pages 40–202)

What This Means (2024 FDD)

According to Bor Restoration's 2024 Franchise Disclosure Document, Bor Restoration is not obligated to compensate a franchisee for an innovation. However, Bor Restoration retains the right to provide compensation for the innovation without incurring any obligation to compensate the innovating franchisee or any other franchisee for future innovations.

Bor Restoration maintains the sole and exclusive right to approve or disapprove any innovation for any reason. If Bor Restoration approves an innovation, it may allow the franchisee who developed the innovation, other franchisees, or company-owned stores to use it.

The franchisee agrees that Bor Restoration owns all rights, titles, and interests to the innovation. The franchisee must take any action necessary to ensure Bor Restoration obtains these rights, provided it costs the franchisee nothing. If the innovation includes copyrightable or patentable items, it will be considered a "work-made-for-hire." If it is not deemed a work-made-for-hire, the franchisee assigns all exclusive rights to Bor Restoration without any further consideration.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.