What is a Boulder Designs franchisee required to provide to the franchisor at the end of each fiscal year?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall submit the Local Marketing Report annually along with the Gross Revenue Reports as stated in Section 12.3. Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Manual. Franchisor shall have the right to release financial and operational information relating to the Franchised Business to Franchisor's prospective franchisees, Franchisor's lenders or prospective lenders, as required with respect to offering Franchisor's or its Affiliate's securities to the public or as required to sell, merge or in any other manner transfer Franchisor's assets or any type of certificates representing an ownership interest in Franchisor. Franchisee shall certify as true and correct all reports to be submitted pursuant to this Agreement. Franchisor may in its sole discretion require the reports pursuant to this Section 12.5 are submitted on a monthly basis upon written seven-day notice to the Franchisee.
Section 12.6 Computer/Software/Phone System
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Agreement, franchisees have several reporting obligations that occur annually, though not strictly at the end of the fiscal year. Specifically, Boulder Designs requires franchisees to submit a Local Marketing Report annually, in conjunction with the Gross Revenue Reports as detailed in Section 12.3 of the agreement. Additionally, franchisees must provide copies of all state sales tax returns that they are required to file with the appropriate governmental agency.
Furthermore, Boulder Designs mandates the submission of Quality Control Data Sheets. These sheets must be filled out and submitted for every job completed. However, these reports are due semi-annually rather than at the end of the fiscal year. The first report, due on July 31st, covers all projects completed from January 1st through June 30th. The second report, due on January 31st, covers all projects completed from July 1st through December 31st of the prior year.
In addition to these specific reports, Boulder Designs retains the right to request other records from franchisees as deemed reasonably necessary or as specified in the Manual. Franchisees are also obligated to certify that all submitted reports are true and correct. It's important to note that Boulder Designs has the discretion to require these reports to be submitted on a monthly basis, provided they give the franchisee a seven-day written notice. Prospective franchisees should be aware of these reporting requirements and ensure they have the systems in place to comply with them.