By what time must all fees be deposited into the Bor Restoration operating account?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
a. The Royalty and all other fees due to us are paid monthly and will be delivered to us by such means as we may determine from time to time (including the delivery through an ACH transaction) on or before the 16th day of the month that follows the month for which the Royalties and other fees were calculated (Due Date). All such fees will be deposited into your operating account no later than 3:00 p.m. Mountain Time by the 15th day of the month following the end of the prior month, but if the 16th day falls on a Saturday, Sunday or federal or state holiday, the Royalty will be due on the next business day.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, all fees must be deposited into the franchisee's operating account no later than 3:00 p.m. Mountain Time by the 15th day of the month following the end of the prior month. However, if the 16th day of the month falls on a Saturday, Sunday, or federal or state holiday, the royalty payment will be due on the next business day.
This means that Bor Restoration franchisees need to ensure that all royalty and other fees are available in their operating account by the specified deadline to avoid any potential late payment penalties or other issues. The franchisor uses this operating account to collect the fees owed to them.
It is important for prospective Bor Restoration franchisees to understand these payment terms and plan accordingly to maintain a good financial standing with the franchisor. Setting up reminders and ensuring sufficient funds are available in the operating account before the deadline can help franchisees avoid any complications related to fee payments.