What is the current monthly Technology Fee for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
h month | | | 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.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the current Technology Fee is $65 per month, but it can increase up to $175 per month. Boulder Designs reserves the right to increase this fee each calendar year by no more than 10% of the prior year's fee. This Technology Fee is used for the development and use of online and System technology, including internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future.
For a prospective Boulder Designs franchisee, this means budgeting at least $65 per month for technology expenses. However, it's crucial to recognize that this fee can increase over time, potentially reaching $175 per month, with annual increases capped at 10%. Franchisees should factor in these potential increases when forecasting their operating expenses. It is important to note that Boulder Designs may provide franchisees with 10 days' notice of any increase to the then-current monthly Technology Fee.
Technology fees are common in franchising, as franchisors often provide and maintain technology systems for franchisees to use. The fee covers the costs associated with these systems, such as development, maintenance, and support. The Technology Fee for Boulder Designs is relatively low compared to other franchises. It is important for prospective franchisees to understand what specific technologies are covered by the fee and how these technologies will benefit their business.
It is also important to note that the FDD states that some of the technologies covered by the Technology Fee "may be implemented in the future." This means that franchisees may be paying for technologies that are not yet available. Prospective franchisees should ask Boulder Designs for a detailed list of the technologies that are currently covered by the fee and the technologies that are planned for the future.