What is the due date for the Boulder Designs Royalty Fee, specifically?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee2,4 | The greater of: (i) The percentage of Collected Gross Revenue in accordance with the following schedule: 7% of Gross Revenue Or (ii) The minimum monthly Royalty Fee in accordance with the following schedule: Year 1 - $750/month Year 2 - $950/ month Year 3 thru remainder of term $1,500/month | First day of each month | |
| 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 current month. |
Note 1. The fees are uniformly imposed and nonrefundable unless noted otherwise below or in the Remarks column. Royalty Fees, Audit Expenses, Transfer Fees, plus any other amounts you owe us will be deducted from payments that your customers submit to you under the Order Processing System, or as a separate ACH withdrawal if warranted.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Royalty Fee is due on the first day of each month. The Royalty Fee is the greater of either 7% of collected gross revenue or a minimum monthly fee. The minimum monthly royalty fee varies depending on the year of operation, starting at $750 per month in the first year, increasing to $950 per month in the second year, and then $1,500 per month for the remainder of the franchise term.
It is important for prospective Boulder Designs franchisees to note that late fees of $100 per incident will be applied to all overdue Royalty Fees and other amounts due to the company. These late fees accrue each month if balances from previous months carry over. This highlights the importance of managing cash flow and ensuring timely payments to avoid incurring additional costs.
Furthermore, Boulder Designs deducts Royalty Fees, Audit Expenses, Transfer Fees, and any other amounts owed to them from payments that customers submit through the Order Processing System, or as a separate ACH withdrawal if necessary. This automatic deduction system underscores the importance of understanding and managing the financial aspects of the franchise agreement to ensure smooth operations and avoid any potential discrepancies or late fee charges.