What access does Boulder Designs have to a franchisee's computer, software, and phone data and systems?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall fill out and submit a Quality Control Data Sheet for every job completed. These reports are due annually July 31 for all projects January 1st through June 30th and the report is due annually January 31st for all projects done between July 1st through December 31st of the prior year.
Franchisee shall submit the Local Marketing Report annually along with the Gross Revenue Reports as stated in Section 12.3. Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Manual. Franchisor shall have the right to release financial and operational information relating to the Franchised Business to Franchisor's prospective franchisees, Franchisor's lenders or prospective lenders, as required with respect to offering Franchisor's or its Affiliate's securities to the public or as required to sell, merge or in any other manner transfer Franchisor's assets or any type of certificates representing an ownership interest in Franchisor. Franchisee shall certify as true and correct all reports to be submitted pursuant to this Agreement. Franchisor may in its sole discretion require the reports pursuant to this Section 12.5 are submitted on a monthly basis upon written seven-day notice to the Franchisee.
Section 12.6 Computer/Software/Phone System
Franchisee must purchase, install, update, upgrade and use computer, credit card processing systems, surveillance systems, point-of-sale system, software and phone systems consisting of hardware and software in accordance with Franchisor's specifications listed in the Manual(s). The computer system and/or POS for your Franchised Business will be dedicated for the operation of your Boulder Designs business and used for no other purpose.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees must purchase and use computer, credit card processing, surveillance, point-of-sale (POS), software, and phone systems that meet Boulder Designs' specifications as detailed in their manuals. The computer system and/or POS must be dedicated solely to the Boulder Designs business. Boulder Designs also designates the information system used in the franchise, including hardware, software, and other equipment. Franchisees are responsible for notifying Boulder Designs immediately of any security breaches and for addressing the source of the breach at their own expense. Franchisees are also responsible for providing notices of breaches and monitoring credit histories and transactions of customers, unless Boulder Designs directs otherwise.
Boulder Designs has the right to inspect the franchised business at any reasonable time, including facilities, equipment, reports, forms, documents, and related data, to ensure compliance with quality control and performance standards. These inspections may include audits to evaluate compliance with required payments, standards, specifications, or procedures. Boulder Designs may also make suggestions and give mandatory instructions regarding the operation of the franchise to ensure compliance with quality standards and protect the goodwill and image of the system. All information obtained from the franchisee or about the franchisee's Boulder Designs franchise, including information in the franchisee's records, becomes the property of Boulder Designs, which they may use for any reason they deem necessary.
Franchisees are required to submit a Quality Control Data Sheet for every job completed, with reports due annually on July 31st for projects from January 1st through June 30th, and on January 31st for projects from July 1st through December 31st of the prior year. Franchisees must also submit a Local Marketing Report annually, along with Gross Revenue Reports. Copies of state sales tax returns and other records reasonably requested by Boulder Designs must also be submitted. Boulder Designs has the right to release financial and operational information about the franchised business to prospective franchisees, lenders, or as required for securities offerings or business transfers. Boulder Designs may require these reports to be submitted monthly with a seven-day written notice.