Does Bor Restoration have the right to change or dissolve Regional Advertising Cooperatives?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
We reserve the right, upon 30 days prior written notice, to allocate all or a portion of your Local Advertising Fee and National Branding Fee to a regional advertising program (Regional Advertising Cooperative) for the benefit of Businesses located within a market area. We have the right to determine the composition of all market areas included in a particular Regional Advertising Cooperative. If a market region is formed, we will require all franchisees and company-owned and affiliate-owned Businesses located in the region to participate. The Regional Advertising Cooperative will be administered by its contributors. There will be no governing documents. All advertising for the Regional Advertising Cooperative will be prepared by a local, national, or international advertising agency or by us. The Regional Advertising Cooperative will prepare unaudited financial statements and will make them available to all Cooperative participants within 120 days of the year-end. We have the right to change, dissolve, reinstate, or merge any Regional Advertising Cooperatives.
Source: Item 11 — (FDD pages 22–28)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, Bor Restoration retains significant control over Regional Advertising Cooperatives. Bor Restoration reserves the right to change, dissolve, reinstate, or merge any Regional Advertising Cooperatives.
Bor Restoration can allocate a portion of a franchisee's Local Advertising Fee and National Branding Fee to a regional advertising program, also known as a Regional Advertising Cooperative, with 30 days' prior written notice. Bor Restoration also determines the composition of market areas within these cooperatives, and participation is mandatory for all franchisees and company-owned businesses in a formed region.
Regional Advertising Cooperatives are administered by their contributors and do not have governing documents. While the advertising will be prepared by a local, national, or international advertising agency or by Bor Restoration, the cooperatives will provide unaudited financial statements to participants within 120 days of the year-end. This structure gives Bor Restoration considerable latitude in managing regional advertising strategies and fund allocation, which could impact a franchisee's marketing efforts and budget.