Where in the Boulder Designs Franchise Disclosure Document can I find more information about advertising obligations?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
We will not use Marketing Fee monies for creating or placing any advertisement that is principally a solicitation for new franchisees, but may include in all advertising prepared using Marketing Fees (including Internet advertising) information concerning franchise opportunities, and a portion of Marketing Fee monies may be used to create and maintain one or more pages on our website devoted to advertising franchise opportunities and identifying and screening inquiries and applications submitted by prospective franchise candidates. We are not required to spend any particular amount on advertising in your area or territory.
Marketing Fee monies are not held in a separate fund and there is no requirement that the Marketing Fee monies be audited. Marketing Fee monies collected during the calendar year that are not spent that specific year, may be used at our discretion during the following year. At the end of each calendar year, you may request an accounting of how the Marketing Fee monies were spent during that specific calendar year.
Marketing Fee is not a trust or escrow, and neither we nor our affiliates have any fiduciary obligation for administering the Marketing Fee or for any other reason
We anticipate that all franchisees will contribute Marketing Fees at the same rate. Although not contractually required, we anticipate that all Boulder Designs Businesses owned by us or an affiliate will contribute Marketing Fees on the same basis as franchisees. We do not require franchisees to participate in any other advertising funded program.
There is no franchisee advertising council that provides us with guidance or suggestions regarding advertising and marketing matters.
We do not have a local or regional advertising cooperative in which the franchisee must participate.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Item 11 covers aspects of the franchisor's assistance, advertising, computer systems, and training. Specifically, it details how the marketing fees are used. Boulder Designs will not use marketing fees to solicit new franchisees, but it may include information about franchise opportunities in advertising that is prepared using marketing fees. This includes potentially using a portion of the marketing fees to maintain a website devoted to advertising franchise opportunities.
The FDD states that Boulder Designs is not required to spend a particular amount on advertising in a franchisee's specific area or territory. The marketing fees are not held in a separate fund, and there is no requirement that the marketing fee monies be audited. However, at the end of each calendar year, a franchisee may request an accounting of how the marketing fee monies were spent during that specific calendar year.
Furthermore, the marketing fee is not considered a trust or escrow, and neither Boulder Designs nor its affiliates have any fiduciary obligation for administering the marketing fee. Boulder Designs anticipates that all franchisees will contribute marketing fees at the same rate, and although not contractually required, Boulder Designs anticipates that all Boulder Designs businesses owned by them or an affiliate will contribute marketing fees on the same basis as franchisees. Franchisees are not required to participate in any other advertising funded program, and there is no franchisee advertising council or local or regional advertising cooperative.