What training-related fees must a transferee pay to Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN | SUMMARY |
|---|---|---|
| FRANCHISE AGREEMENT | ||
| AGREEMENT | misuse of the Marks or Proprietary Information, breach of curable covenants more than three times during the Initial Term or one time during Successor Franchise Term, illegal transfer, violation of laws applying to business, criminal or civil convictions, material misrepresentations, failure to obtain permission, failure to pay taxes, underreporting, complaints against the business, disparagement of us, failure to add new goods or Services, other violations of Franchise Agreement that contain their own cure provisions, failure to add new goods, Services or technology. We have the right to manage the Business temporarily. | |
| i. Franchisee's obligations on | 11 | Obligations include deidentification, payment of amounts due, cessation of |
| termination/non-renewal | use of trademarks and Proprietary Information, and return of all materials (see r. below). | |
| j. Assignment of contract by | 9 | No restriction on the franchisor's right to assign. |
| franchisor | 140 restriction on the franchisor saight to assign. | |
| k. "Transfer" by franchisee - | 9 | Sale, assignment, gift, pledge, mortgage, transfer because of dissolution of |
| defined | marriage, civil union or partnership, or other disposition of any part of the Franchise Agreement, ownership of the franchisee or the Business. | |
| 1. Franchisor approval of transfer | 9 | Transferee has had a background check and has the necessary financial |
| by franchisee | resources. We have a 30-day right of first refusal; the transferee pays for | |
| m. Conditions for franchisor | 9 | training (Item 6). |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 33–35)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, a transferee—someone to whom a Bor Restoration franchise is being transferred—is responsible for covering the costs associated with training. Specifically, the FDD indicates that the transferee must pay for training as a condition for the franchisor's approval of the transfer. This means that if you are considering purchasing an existing Bor Restoration franchise from a current franchisee, you should anticipate incurring training fees as part of the transfer process.
This requirement ensures that the new franchisee is properly trained in Bor Restoration's operating procedures and standards, which helps maintain consistency across all franchise locations. The exact amount of these training fees is detailed in Item 6 of the FDD, which covers all fees a franchisee may be expected to pay.
Prospective franchisees should carefully review Item 6 to understand the full scope of training costs and any other fees associated with becoming a Bor Restoration franchisee through a transfer. Understanding these costs upfront is crucial for accurate financial planning and ensuring a smooth transition.