When is the Royalty fee due for a Bor Restoration franchise?
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 will be due on the preceding business day. The Royalty fee is payable to Bor Restoration through an automated clearinghouse (ACH) transaction.
The Royalty fee 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 of $500. Gross Sales includes all revenue and income actually received by the franchisee from the operation of their business. This includes revenue from clients they directly bill, revenue from a client's insurance carrier, late fees, revenue generated over the billed amount, and any other amount charged to clients, whether received in cash, services in kind, or on credit.
Prospective franchisees should note that timely payment of the Royalty fee is crucial to remain in good standing with Bor Restoration. Late payments may incur default interest, as described in the Franchise Agreement. Additionally, Bor Restoration may increase the interest rate for late payments, provided they give franchisees no less than 60 days' prior written notice, and the rate does not violate applicable state laws.