factual

What is a Boulder Designs franchisee entitled to for a National Headstone Program project?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon the Franchisee's acceptance of the project and completion the Franchisee is entitled to the remaining balance for the project.

As of the Effective Date of this Agreement, Franchisor will collect a deposit due per project, which is based on template and materials selected by the customer which could vary based on the total project cost, prior to sending the design proof if one available and customer information to the Franchisee for creation and construction ("Project Deposit").

The Franchisor may provide the Franchisee with design proof and customer information, and the Franchisee shall be entitled to the remaining balance for the project which shall be gross revenue per project minus the Project Deposit paid to the Franchisor.

Franchisor shall retain the Project Deposit for revenue generated inside and outside the Franchisee's Territory as a result of the lead provided by the Franchisor and sale from the National Headstone Program projects assigned to the Franchisee as national headstone accounts fee ("National Headstone Accounts Fee").

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee who accepts and completes a National Headstone Program project is entitled to the remaining balance for the project. This balance is calculated as the gross revenue per project minus the Project Deposit paid to Boulder Designs. Boulder Designs retains the Project Deposit as a national headstone accounts fee for revenue generated inside and outside the Franchisee's Territory as a result of the lead provided by Boulder Designs and sale from the National Headstone Program projects assigned to the Franchisee.

Boulder Designs collects a deposit per project, with the amount varying based on the template and materials selected by the customer, which can fluctuate depending on the total project cost. This Project Deposit is collected before sending the design proof and customer information to the franchisee for creation and construction. The franchisee is responsible for communicating with the customer to complete the project according to the design and specifications, and must send a picture of the completed project to the customer for review and approval.

However, Boulder Designs reserves the right to authorize other franchisees or third parties to provide services within the franchisee's territory if the franchisee is deemed incapable of servicing the customer or if the service volume exceeds demand. In such cases, the franchisee is not entitled to any compensation. The franchisee is also responsible for any repair or replacement work needed for National Headstone Program customers they service, including the costs of materials, overhead, and labor to meet Boulder Designs' standards. If the franchisee fails to make necessary repairs or replacements, Boulder Designs may arrange for the work and charge the franchisee for the associated costs.

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.