When is the Bor Restoration royalty fee due?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
OTHER FEES**
| TYPE OF FEE (Note 1) | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty | The greater of 7% of "Gross Sales" on water, fire, contents cleaning, and mold remediation services, plus 5% on any after-remediation repair services (each being the "Percentage Royalty") or $500 (Minimum Royalty). (Note 2) | or before the 16th day of each month. If the 16th falls on a Saturday, Sunday, or federal or state holiday, the Royalty will be | Payable to us through an automated clearinghouse (ACH) tr |
Source: Item 6 — Other Fees (FDD pages 10–15)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the royalty fee is due on or before the 16th day of each month. If the 16th falls on a Saturday, Sunday, or federal or state holiday, the royalty payment is due on the next business day. The royalty fee is payable to Bor Restoration through an automated clearinghouse (ACH) transaction.
The royalty itself is calculated as the greater of 7% of "Gross Sales" on water, fire, contents cleaning, and mold remediation services, plus 5% on any after-remediation repair services, or a minimum royalty of $500. Gross sales include all revenue and income actually received by the franchisee from the operation of the business.
It is important for prospective Bor Restoration franchisees to note the specific definition of "Gross Sales" and ensure they understand what revenue is subject to the royalty fee. Paying via ACH is a fairly standard practice in franchising, ensuring timely and consistent payments. Franchisees should also be aware of the minimum royalty requirement, as they will be required to pay at least $500 per month regardless of their gross sales.