When must a Boulder Designs franchisee furnish an accounting of local advertising expenditures?
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 recommended to spend 10% of their annual gross revenues on local advertising. Regardless of the amount spent, a Boulder Designs franchisee must 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 requirement ensures that Boulder Designs can monitor franchisees' adherence to the recommended advertising spend and assess the effectiveness of local marketing efforts. It also allows Boulder Designs to ensure brand consistency and that franchisees are actively promoting the business within their territories.
While the advertising spend is recommended, the mandatory reporting provides Boulder Designs with insight into each franchisee's marketing activities. This information can be used to provide support and guidance to franchisees who may be struggling with their local advertising efforts, or to identify best practices that can be shared across the franchise system. Failing to provide this accounting could potentially lead to repercussions, although the document does not explicitly state what those repercussions might be.