What is the consequence of failing to meet the Minimum Gross Revenue requirement for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
r within your Territory.
Currently continuation of your territorial protection does not depend on your achieving any certain sales volume, market penetration, or other contingency. However, we have the right to implement a Minimum Gross Revenue requirement by providing you at least 30 days' advance written notice. We do not currently impose such a requirement, but, if imposed, we anticipate that the Minimum Gross Revenue Requirement will not exceed $30,000 annually and your failure to meet the requirement may result in an obligation to attend re-boot training at your expense. If you refuse to attend re-boot training when we require, you will be granted thirty (30) days to cure this default. If you are not able to cure this default within the 30-day period, we have the right to terminate the Franchise Agreement.
The boundaries of your territory may be altered only by mutual consent, but we have the unilateral right to convert a Separate Territory into a Shared Territory in our sole discretion. A Separate Territory may be converted into a Shared Territory should you fail to meet a minimum performance target or minimum gross revenue requirement as mentioned above. Such Shared Territory would consist of a populat
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, currently, continuation of territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. However, Boulder Designs retains the right to implement a Minimum Gross Revenue requirement with at least 30 days' advance written notice to the franchisee.
If a Minimum Gross Revenue requirement is imposed, Boulder Designs anticipates it will not exceed $30,000 annually. Failure to meet this requirement may result in an obligation for the franchisee to attend re-boot training at their own expense. If the franchisee refuses to attend the required re-boot training, they will be granted thirty (30) days to cure this default.
If the franchisee is unable to cure the default within the 30-day period, Boulder Designs has the right to terminate the Franchise Agreement. Additionally, failure to meet a minimum performance target or minimum gross revenue requirement may result in a Separate Territory being converted into a Shared Territory. Such Shared Territory would consist of a population greater than 450,000.