Does the definition of 'Gross Revenues' for a Boulder Designs franchise include revenue from National Accounts?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 4. "Gross Revenues" means the aggregate of all income and monthly fees Franchisee receives from customers for the purchase or provision of any goods or services, including enrollment fees, or any other person or business entity for the Franchised Business in connection with the Franchised Business (whether or not in accordance with the terms of the Franchise Agreement) and whether for check, cash, credit or otherwise, from the sale of products and services (including service charges in lieu of gratuity) regardless of the dollar amount Franchisee sells each product or service for, including, without limitation, all proceeds from any business interruption insurance and any revenue generated from National Accounts, but excluding (a) all insurance payments, check, cash, credit or debit card refunds made in good faith provided, prior to granting the refunds, the revenue related to the refunds was included in Gross Revenues, (b) any sales and equivalent taxes that Franchisee collects for or on behalf of and pay to any governmental taxing authority, and (c) any rebate Franchisee receives from a manufacturer or supplier.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Gross Revenues do include revenue generated from National Accounts. The FDD defines "Gross Revenues" as the total income a franchisee receives from customers for goods and services related to the franchised business. This includes all income, regardless of whether it's from cash, credit, or other forms of payment.
Specifically, the definition encompasses proceeds from business interruption insurance and revenue from National Accounts. However, the definition excludes certain items such as insurance payments, legitimate refunds (where the initial revenue was included in Gross Revenues), sales taxes collected and remitted to governmental authorities, and rebates received from manufacturers or suppliers.
This means that a Boulder Designs franchisee must include all revenue from National Accounts when calculating royalty fees and other fees based on Gross Revenues. However, under the National Headstone Program, gross revenue collected is not subject to the 15% National Accounts Fee.