Under what conditions can Bor Restoration terminate the National Branding Account?

According to the 2024 Bor Restoration Franchise Disclosure Document, Bor Restoration intends for the National Branding Fees to be continual and perpetual. However, Bor Restoration reserves the right to form, change, suspend (and subsequently reinstate), merge, or terminate the National Branding Account if necessary. Bor Restoration is not allowed to close the National Branding Account until all contributions and earnings have been used for the purpose for which they were collected.

This means that while Bor Restoration plans to maintain the National Branding Account indefinitely, it retains the discretion to modify or discontinue it under certain circumstances. The FDD does not define what constitutes "necessary" for termination, so a prospective franchisee should seek clarification from Bor Restoration on what specific conditions would trigger such a decision.

It is fairly common for franchisors to maintain control over advertising funds and have the ability to make changes to the advertising programs. However, franchisees typically want assurance that advertising fees are used effectively to support the brand and their businesses. The commitment to use all contributions and earnings before closing the account provides some reassurance that funds will be used for their intended purpose.

Prospective franchisees should inquire about the historical use of national branding fees, the decision-making process for allocating these funds, and the criteria Bor Restoration would use to determine if it's "necessary" to terminate the National Branding Account. Understanding these factors can help a franchisee assess the potential value and stability of the national advertising program.