Is the 10% local advertising spend for Boulder Designs a requirement or a recommendation?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Technology Fee5 | Currently $65 per month, but up to $175 per month. We reserve the right to increase each calendar year by an amount not to exceed 10% of the prior year's fee. | Monthly | For the development and use of online and System technology, including but not limited to internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future. |
| Recommended Local Advertising Spend | 10% of Annual Gross Revenues | As invoiced | We highly recommend you spend a minimum of 10% of annual gross revenues on local advertising. After you have begun operations, by the 31st of January of each year, you must furnish us an accurate accounting of your expenditures on local advertising for the preceding one-year period regardless of the amount spent. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the 10% local advertising spend is a recommendation, not a requirement. The FDD states that Boulder Designs "highly recommend[s]" that franchisees spend a minimum of 10% of annual gross revenues on local advertising. However, franchisees must furnish Boulder Designs with an accurate accounting of their local advertising expenditures for the preceding year by January 31st of each year, regardless of the amount spent.
While the 10% spend is not mandatory, the requirement to report advertising expenditures suggests that Boulder Designs places importance on local marketing efforts. This allows Boulder Designs to monitor franchisees' marketing activities and potentially offer guidance or support. It also gives Boulder Designs insight into the overall marketing effectiveness of the franchise system.
For a prospective Boulder Designs franchisee, this means they have flexibility in allocating their advertising budget. They can choose to spend more or less than 10% based on their local market conditions and business needs. However, they must be prepared to track and report their advertising expenses to Boulder Designs annually. Failing to report advertising expenses could potentially lead to issues with the franchisor, even if the 10% spending level is not strictly enforced.