What is the due date for the accounting of local advertising expenditures 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. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees are highly recommended to spend 10% of their annual gross revenues on local advertising. Regardless of the amount spent, Boulder Designs requires franchisees to furnish an accurate accounting of their local advertising expenditures for the preceding one-year period by January 31st of each year, after they have begun operations.
This means that each year, a Boulder Designs franchisee must compile and submit a report detailing how much they spent on local advertising initiatives. This accounting allows Boulder Designs to monitor whether franchisees are adhering to the recommended advertising spend and to assess the effectiveness of local marketing efforts across the franchise system.
For a prospective franchisee, this requirement means maintaining meticulous records of all advertising expenses. It's crucial to track invoices, receipts, and any other documentation that proves advertising expenditures. Failing to provide this accounting by the due date could potentially lead to penalties or other consequences as outlined in the franchise agreement. While the FDD excerpt does not detail the penalties for failing to provide the accounting, it is important to maintain accurate records and submit them on time.