For Boulder Designs franchises, are franchisees required to purchase or lease services, equipment, furniture, or other materials from designated or approved suppliers?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ure and Signs
You must contract, purchase, lease, or license any services, equipment, furniture, fixtures, supplies, computer hardware and software, or other materials to be used in the operation of the Franchised Business only from suppliers that we designate or approve (which might include or be limited to us or our affiliates), if stated in the Manual or previously approved in writing by us. You may purchase items and services for which we have not identified approved suppliers from any source, if the items and services meet our specifications.
You must purchase certain supplies and equipment necessary for the Franchised Business from us. Currently we are the only approved supplier for a Concrete Mixer, Transport Trailer, truck signage, marketing and initial supplies, manuals, and other necessary equipment as well as optional equipment and supplies as set forth in Schedule 1 of the Key Terms Page (Exhibit 1 to the Franchise Agreement). We do not permit franchisees to contact with alternative suppliers for these supplies and equipment, and accordingly there are no procedures for securing approval for alternative suppliers for such items.
Except as described above, neither we nor any of our affiliates is currently an approved supplier. None of our officers owns an interest in any other privately-held supplier or a material interest in any publicly-held supplier.
Other Products, Supplies and Materials
You must purchase all products, goods, services, supplies, fixtures, materials or equipment and signs; and other materials and supplies used in the operation of the Franchised Business that meet the specifications and quality standards that we have established periodically and from suppliers and manufacturers that we have approved, as described in the Manual(s).
You must use only envelopes, business cards, letterhead, labels and documentation imprinted with the Marks and colors that we have prescribed and approved.
Specifications and Standards
We have the right to approve sources of services or products sold in Franchised Businesses. Any changes to or modifications of the System, the Manual, or any standard will be promptly communicated to you.
You must comply with our specifications for brands and types of equipment used in your Franchised Business. If you propose to purchase any items for use in your Franchised Business from an unapproved source for which we have identified, designated, or approved supplier(s), you must request our approval first. We may require, as a condition of granting approval that our representative(s) be permitted to inspect the supplier's facilities, and that information, specifications, and samples as we reasonably request be delivered to us for testing. We will notify you within 90 days of your request as to whether we approve the supplier or product. If no approval is received within 90 days, it is deemed denied. Upon written acceptance and approval by us of services or products and suppliers submitted for inclusion on the Approved Suppliers List and Approved Supplies List, you will be free to purchase such service or product from such approved supplier. We may revise our Approved Supplier and Approved Supplies Lists.
We apply the following general criteria in designating a proposed supplier as an approved source: (1) ability to provide the service or product to our quality specifications; (2) production and delivery capability; (3) minimum standards for safety; (4) integrity of the supplier; and (5) legality of the product or company.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are generally required to purchase or lease services, equipment, furniture, and other materials from designated or approved suppliers. If specified in the manual or previously approved in writing by Boulder Designs, franchisees must source these items from suppliers that Boulder Designs designates or approves, which may include Boulder Designs itself or its affiliates. However, franchisees can purchase items and services from any source if Boulder Designs has not identified approved suppliers, provided that these items and services meet Boulder Designs' specifications.
Specifically, franchisees must purchase certain supplies and equipment, such as a concrete mixer, transport trailer, truck signage, marketing and initial supplies, and manuals, directly from Boulder Designs, as they are currently the only approved supplier for these items. There is no process for franchisees to seek approval for alternative suppliers for these specific items. For other products, goods, services, supplies, fixtures, materials, equipment, and signs used in the operation of the franchised business, franchisees must adhere to the specifications and quality standards established by Boulder Designs and purchase from approved suppliers and manufacturers, as detailed in the manuals.
Boulder Designs has the right to approve sources of services or products sold in franchised businesses and will promptly communicate any changes or modifications to the system, manual, or any standard. If a franchisee proposes to purchase items from an unapproved source for which Boulder Designs has identified an approved supplier, they must request approval first. Boulder Designs may require inspections of the supplier's facilities and submission of information, specifications, and samples for testing. Boulder Designs will notify the franchisee of the approval decision within 90 days.
Boulder Designs may negotiate purchase arrangements with primary suppliers for the benefit of franchisees and receive rebates or other material benefits on account of franchisee purchases or leases. If Boulder Designs negotiates a purchase agreement for the region where the franchisee's Boulder Designs business is located, the franchisee must participate in the purchasing program. For example, Boulder Designs currently has a purchasing agreement with a third-party supplier for certain supplies, including paint and paint supplies, and receives a rebate between 2% and 4% on these supplies purchased by franchisees from this supplier.