Under what conditions can a Bor Restoration franchise be renewed or extended?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| a. Length of the franchise term | 4 | Ten years unless terminated sooner. |
| b. Renewal or extension of the term | 4 | Two additional 5-year terms if all obligations for Successor Franchise Rights are met. |
| c. Requirements for franchisee to renew or extend | 4 | You must provide notice, you must have no outstanding material defaults or money owed, you must not have had more than three default notices during the initial term or one notice during the Successor Franchise Term, we must not have determined in our Reasonable Business Judgment not to renew, you must sign the then-current Franchise Agreement (which may have terms materially different than those of your current Franchise Agreement) and pay the renewal fee. |
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, the franchise term is initially ten years, but a franchisee may be able to renew or extend the term for two additional 5-year terms. This is contingent upon meeting all obligations for Successor Franchise Rights.
To renew or extend the franchise term, a Bor Restoration franchisee must provide notice of their intent to renew. They must also have no outstanding material defaults or money owed to Bor Restoration. Furthermore, the franchisee must not have received more than three default notices during the initial term, or one notice during the Successor Franchise Term. Bor Restoration must also not have determined, in their Reasonable Business Judgment, not to renew the franchise agreement.
Finally, the franchisee must sign the then-current Franchise Agreement, which may contain terms that are materially different from the original agreement. The franchisee must also pay the renewal fee to Bor Restoration. These conditions ensure that only franchisees in good standing and who agree to the updated terms are granted the opportunity to continue operating under the Bor Restoration brand.