What must a Boulder Designs franchisee submit to the franchisor in regards to state sales tax?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Boulder Designs Franchise Disclosure Document, franchisees are required to submit copies of all state sales tax returns to the franchisor. These returns must be those that the franchisee is already required to file with the appropriate governmental agency.
In addition to state sales tax returns, Boulder Designs franchisees must also submit other records as reasonably requested by the franchisor or as specified in the manual. The franchisor retains the right to release financial and operational information about the franchised business to prospective franchisees, lenders, or when offering securities to the public, or in the event of a sale, merger, or transfer of assets.
All reports submitted by the Boulder Designs franchisee must be certified as true and correct. Furthermore, the franchisor 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 ensures that Boulder Designs maintains oversight of the franchisee's compliance with tax obligations and has access to necessary financial data for various business purposes.