What article in the Boulder Designs Franchise Agreement outlines the fees associated with the franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.5 Technology Fee
Franchisee shall pay to Franchisor its then-current technology fee ("Technology Fee") on the first of every month, which is currently defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. Franchisor has the right to increase this fee at Franchisor's discretion upon providing Franchisee 30 days' notice of their intent to increase to the current monthly Technology Fee.
The Technology Fee will cover Franchisor's cost of providing BOULDER DESIGN franchisees technology and other technical resources, including, without limitation, certain internet resources, website, email, intranet address, software, and other technology to facilitate Franchisee's operation of the Franchised Business. The parties acknowledge and agree that the technological environment is rapidly changing and that it is difficult to anticipate the cost of developing, acquiring, implementing, and licensing Internet and communications technologies that may benefit franchisees of the System. Each calendar year, the Technology Fee shall increase automatically by an amount not to exceed 10% of the prior year's Technology Fee. Franchisee agrees to pay the Technology Fee according to the terms prescribed by the Franchisor.
In addition, Franchisor requires Franchisee to purchase, through an approved supplier, the approved point of sale system ("POS"). Franchisee will be responsible for any ongoing upgrades or updates to the POS, ongoing maintenance packages, and computer and software packages after installation. The computer system and/or POS for your Franchised Business will be dedicated to the operation of the Boulder Designs business and used for no other purpose.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Boulder Designs Franchise Disclosure Document, Article 3 of the franchise agreement outlines the fees associated with the franchise. Specifically, Section 3.5 details the Technology Fee that franchisees must pay to Boulder Designs.
According to Section 3.5, franchisees must pay a monthly Technology Fee, with the specific amount defined on the Key Terms page or in Exhibit 1 of the Franchise Agreement. Boulder Designs retains the right to increase this fee with 30 days' notice. This Technology Fee covers the cost of providing franchisees with technology and technical resources, such as internet resources, website, email, intranet, and software.
Furthermore, the Technology Fee is subject to an annual increase, not exceeding 10% of the previous year's fee. In addition to the Technology Fee, Boulder Designs requires franchisees to purchase an approved point-of-sale (POS) system from an approved supplier. Franchisees are responsible for all ongoing costs related to the POS system, including upgrades, updates, maintenance, and software packages. The computer system and/or POS must be dedicated solely to the Boulder Designs business.