What is the consequence of overdue Royalty Fees for a Boulder Designs franchise?
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. |
| Marketing Fee | Currently $0 per month | Monthly | We anticipate charging an amount no greater than $200 per month once implemented. We will provide you with prior notice before any increases in the monthly Marketing Fee are imposed. Once this fee is implemented the fee cap will increase each calendar year by an amount not to exceed 10% of the prior year's cap. |
| Late Fees | $100 per incident | 11th day of each month | Applies to all overdue Royalty Fees, and other amounts due to us. Also applies to any understatement in amounts due revealed by an audit. Late fees will continue to accrue each month when balances due from previous months carry over into the curr |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, a franchisee will incur a $100 late fee for each incident of overdue Royalty Fees. This late fee also applies to other amounts due to Boulder Designs and any understatements in amounts due revealed by an audit.
Importantly, these late fees will continue to accrue each month if the outstanding balances from previous months are not paid and carry over into the current month. This means that if a franchisee does not promptly address overdue Royalty Fees, the accumulating late fees can quickly increase the overall debt owed to Boulder Designs.
This policy is fairly standard in the franchise industry, as franchisors need to ensure timely payments to maintain their own financial stability and support the services they provide to franchisees. Franchisees should prioritize timely payment of Royalty Fees to avoid these additional costs and maintain a good financial standing with Boulder Designs.