factual

What must a Boulder Designs franchisee demonstrate to avoid termination for understating fees?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee shall be obligated to pay this National Accounts Fee to the franchisor for all future revenues received from such account as a repeat customer. Failure to pay this fee on current or future projects from National Accounts Progr

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, a Boulder Designs franchisee's failure to pay the National Accounts Program fee on current or future projects from National Accounts Program could lead to termination. To avoid this, the franchisee must ensure timely and full payment of this fee.

The National Accounts Program fee is determined by Boulder Designs and can be 20% of the Gross Revenues or another amount or method designated at the sole discretion of Boulder Designs. This fee is charged for projects obtained through the National Accounts program and covers Boulder Designs' costs for securing the project and related administrative expenses.

The franchisee is obligated to pay this fee for all future revenues received from such an account as a repeat customer. This obligation continues for all future revenues from repeat National Accounts customers, making it a long-term financial responsibility for the franchisee. Therefore, understanding and adhering to the payment terms of the National Accounts Program fee is crucial for maintaining a good standing with Boulder Designs and avoiding potential termination of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.