When must a Boulder Designs franchisee furnish an accounting of Local Advertising expenditures for the preceding calendar year?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We highly recommend you spend at least 10% of Annual Gross Revenue on Local Advertising that conforms to our standards. On the 31st day of January of each year, you must furnish to us an accurate accounting of the expenditures on Local Advertising for the preceding calendar year regardless of how much was spend in the previous year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are recommended to spend at least 10% of their Annual Gross Revenue on local advertising that adheres to Boulder Designs' standards. Regardless of the amount spent, a Boulder Designs franchisee must furnish an accurate accounting of their local advertising expenditures for the preceding calendar year to Boulder Designs on the 31st day of January each year.
This requirement ensures that Boulder Designs can monitor franchisees' advertising efforts and compliance with brand standards. It also allows Boulder Designs to assess whether franchisees are adequately investing in local marketing to promote their businesses.
For a prospective franchisee, this means maintaining meticulous records of all local advertising expenses throughout the year. This includes invoices, receipts, and any other documentation that substantiates the advertising spend. Failing to provide this accounting by the specified date could potentially lead to issues with the franchisor and possible repercussions as outlined in the franchise agreement.