What is the deadline for a Boulder Designs franchisee to submit annual financial statements to the franchisor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the deadline for franchisees to submit annual financial statements is not explicitly stated. However, Section 12.3 mentions that Gross Revenue Reports are submitted annually along with the Local Marketing Report, as stated in Section 12.5. Section 12.5 does not specify the deadline for submitting annual financial statements.
While the exact deadline for annual financial statements is not provided, franchisees are required to submit other reports, such as Quality Control Data Sheets, Local Marketing Reports, and Gross Revenue Reports. The Quality Control Data Sheets are due July 31 for projects completed from January 1st through June 30th, and January 31st for projects completed from July 1st through December 31st of the prior year.
Prospective Boulder Designs franchisees should inquire directly with the franchisor about the specific deadlines and requirements for submitting annual financial statements to ensure full compliance with the franchise agreement. Understanding these reporting obligations is crucial for maintaining a good standing with Boulder Designs and avoiding any potential penalties or breaches of contract.