Does Bor Restoration specify how the Regional Advertising Cooperative is managed or governed?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
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| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| (Note 1) Local Advertising | The greater of $1,500 or | As incurred. | You pay local suppliers, subject to our |
| Fee | 5% of Gross Sales per month. | approval. The Local Advertising Fee will also be used for internet advertising (Item 11). We may require your expenditures to be used in the Regional Advertising Cooperative. We may increase this amount at any time to no more than 6% or $2,000 after first giving you no less than 60 days prior written notice. | |
| National Branding Fee | Currently, none. | Payable with Royalty. | We may, in the future, collect a percentage of your Gross Sales or a fixed dollar figure to fund national branding events and social media advertising materials. We will give you no less than 60 days prior written notice before implementing this fee or, once implemented, before changing this fee. Payable to us. |
| Regional Advertising Cooperative Fee | Currently, none. If a Regional Advertising Program is established, you may be required to contribute a specified part of your Local Advertising Fee and National Branding Fee. | Payable with Royalty. | Payable to the cooperative. We have not determined any formula for calculating the percentage of your Local Advertising Fee that would be paid to the cooperative. |
Source: Item 6 — Other Fees (FDD pages 10–15)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the details regarding the management and governance of the Regional Advertising Cooperative are not fully defined. While franchisees may be required to contribute a portion of their Local Advertising Fee and National Branding Fee to a Regional Advertising Program, Bor Restoration has not yet determined a specific formula for calculating the percentage of the Local Advertising Fee that would be allocated to the cooperative.
This lack of specific information means that prospective franchisees should inquire further about how these cooperatives will be structured and managed. Understanding the governance and decision-making processes of the cooperative is crucial, as it will directly impact how advertising funds are spent and what influence franchisees have over marketing strategies in their region.
It is common in franchising for advertising cooperatives to be governed by a board of franchisees, the franchisor, or a combination of both. Clarification from Bor Restoration on these points will help potential franchisees assess the value and effectiveness of the Regional Advertising Cooperative and its potential impact on their business.