Is a Boulder Designs franchisee required to report all sales to the franchisor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall fill out and submit a Quality Control Data Sheet for every job completed. These reports are due annually July 31 for all projects January 1st through June 30th and the report is due annually January 31st for all projects done between July 1st through December 31st of the prior year.
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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are required to submit several reports to the franchisor. Specifically, franchisees must submit a Quality Control Data Sheet for every job completed, with reports due annually on July 31st for projects completed between January 1st and June 30th, and on January 31st for projects completed between July 1st and December 31st of the prior year. Franchisees must also submit a Local Marketing Report annually along with Gross Revenue Reports.
In addition to these regular reports, Boulder Designs franchisees are also required to submit copies of all state sales tax returns that are required to be filed with the appropriate governmental agency. The franchisor retains the right to request other records as deemed reasonably necessary or as specified in the manual. All reports submitted must be certified as true and correct by the franchisee.
Furthermore, Boulder Designs retains the right to release financial and operational information about the franchised business to prospective franchisees, lenders, or as required for securities offerings or business transfers. The franchisor also has the discretion to require these reports to be submitted on a monthly basis, provided they give the franchisee a seven-day written notice. This comprehensive reporting ensures that Boulder Designs can monitor franchisee performance, provide support, and maintain system-wide standards.