How is the franchisee's compensation calculated for a Boulder Designs National Headstone Program project?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
National Headstone Program.
- Boulder Designs® 1 c. Franchisee's Obligations and Procedures. General procedure for procurement and servicing the National Headstone Program customer is subject to this Agreement and other terms and conditions of the Franchise Agreement, which Franchisor may change at their sole discretion upon 15 days' notice to the Franchisee. Prospective customer has an option to design their own headstone using the National
Franchise Agreement | 2025
Headstone Program webpage and submit it to obtain an estimate on cost or in the alternative they may choose to e-mail the Franchisor's design department for direct questions regarding design and pricing. Once the customer is approved the Franchisor may collect the Project Deposit (as defined below) and provide design proof if available and customer information to the Franchisee for construction. Franchisee shall be solely responsible for any communication with the customer to complete the project per design and/or any specifications provided by the customers. Franchisee shall send picture of completed project to the customer for review and approval. Franchisee further acknowledges at their sole cost and expense the Franchisee shall deliver and install the product at the customer requested location, provided that the Franchisee may charge reasonable delivery and installation of the product to the customer per customer's request. Franchisor may at their sole discretion and in no obligation to do so, may reach out to the customer to assure satisfaction and provide a lifetime warranty.
- d. Fees. As of the Effective Date of this Agreement, Franchisor will collect a deposit due per project, which is based on template and materials selected by the customer which could vary based on the total project cost, prior to sending the design proof if one available and customer information to the Franchisee for creation and construction ("Project Deposit"). The Franchisor may provide the Franchisee with design proof and customer information, and the Franchisee shall be entitled to the remaining balance for the project which shall be gross revenue per project minus the Project Deposit paid to the Franchisor. Franchisor shall retain the Project Deposit for revenue generated inside and outside the Franchisee's Territory as a result of the lead provided by the Franchisor and sale from the National Headstone Program projects assigned to the Franchisee as national headstone accounts fee ("National Headstone Accounts Fee"). Franchisee acknowledges that the National Headstone Accounts Fee is reasonable amount enforced by the Franchisor, as a fee for obtaining the project, maintaining the website for the National Headstone Program, heavily marketing the services to continuously obtain more leads for the participant franchisees, and for the administrative costs related to the National Headstone Program. Franchisee shall be solely responsible for collecting any additional information directly from a customer for creation and construction of the product. Franchisee shall be further responsible for finalizing the design for the customer and submitting the same to the Franchisor. Failure to submit the finalized design shall be considered a default of this Agreement.
- e. Standards. All work performed pursuant to this Agreement shall be done by the Franchisee in accordance with the operational systems, procedures, policies, methods and requirements as identified by the Franchisor.
- f. Repair or Replacement Products. Franchisee shall be responsible for providing any repair or replacement work for National Headstone Program customers Franchisee serviced.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee's compensation for a National Headstone Program project is determined after the franchisor collects a Project Deposit. This deposit is based on the template and materials selected by the customer and can vary depending on the total project cost. After the franchisee accepts the project and completes it, they are entitled to the remaining balance. This balance is calculated as the gross revenue per project minus the Project Deposit that was initially paid to Boulder Designs.
Boulder Designs retains the Project Deposit as a National Headstone Accounts Fee. This fee covers revenue generated both inside and outside the franchisee's territory from leads provided by Boulder Designs and sales from National Headstone Program projects assigned to the franchisee. Boulder Designs considers this fee reasonable, citing its purpose in obtaining projects, maintaining the National Headstone Program website, marketing services to generate leads, and covering administrative costs related to the program.
However, the FDD also states that if Boulder Designs determines that a franchisee is not capable of servicing a National Headstone Program customer, or if the service volume exceeds the franchisee's capacity, Boulder Designs reserves the right to authorize other franchisees or qualified third parties to provide the services within the franchisee's territory. In such cases, the franchisee does not have the right to be compensated for services provided by Boulder Designs or other franchisees to the National Headstone Program customer within their territory. Additionally, franchisees will not be awarded finder's fees or any other compensation for National Accounts projects completed in their territory.