What section of the Bor Restoration franchise agreement details the royalty fees?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ware Suite Initial License Fee; and,
- iii. pay the Technology Startup Fee.
- c. There are no refunds for any of these fees.
3.2 BOR Software Suite Monthly License Fee, Technology Maintenance Fee, and New Technology Fees
- a. You will pay the then-current BOR Software Suite Monthly License Fee at the same time you pay your Royalties. We may increase the BOR Software Suite License Fee at any time and in any amount after giving you no less than 60 days prior written notice before any such increase.
- b. You will pay us our then-current Technology Maintenance Fee. We may increase this fee at any time without limitation after first giving you no less than 60 days' written notice.
- c. We each also acknowledge and agree that changes to technology are dynamic and not predictable during a Term of this Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, section 3.3 of the franchise agreement outlines the royalty fees. Additionally, section 3.2a mentions that the BOR Software Suite Monthly License Fee is paid at the same time as the royalties.
Item 23 defines "Royalty" or "Royalties" as the Minimum Royalty or Percentage Royalty, as applicable. This indicates that Bor Restoration franchisees may encounter either a minimum fixed royalty amount or a royalty calculated as a percentage of gross sales, depending on the specific terms outlined in their franchise agreement.
Furthermore, the document mentions that during any Successor Franchise Term, the royalty fees in the renewed agreement will be no more than what is charged to new franchisees at that time. This provides some assurance that royalty terms will remain competitive if a franchisee chooses to renew their agreement.