How often must the Statement of Ownership (Exhibit 1) be updated by a Bor Restoration franchisee?

According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees must report all changes to the Statement of Ownership (Exhibit 1) to Bor Franchising, LLC. The Statement of Ownership applies to the Bor Restoration business authorized under the Franchise Agreement.

The Statement of Ownership includes details about the franchisee's business structure. Specifically, this includes whether the franchisee is an individual, partnership, corporation, or limited liability business entity. If the franchisee is a partnership, the statement must include each partner's name and address, whether they are active in management, their equity stake, and the state where the partnership was formed. For limited liability entities, the statement requires the name and address of each equity-interest holder and the state where the entity was formed. If the franchisee is a corporation, the statement must include the state and date of incorporation, the names and addresses of each officer and director, and a list of every shareholder's name and address, showing the percentage of stock each holds.

This requirement ensures Bor Restoration maintains accurate records of its franchisees' ownership structures. This allows Bor Restoration to know who its franchisees are and who controls them. For a prospective franchisee, this means they must be prepared to promptly update Bor Restoration with any changes to their business's ownership, such as changes in partners, equity holders, officers, directors, or shareholders.