What happens if a Boulder Designs franchisee fails to pay the National Accounts fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, failure to pay the National Accounts Program fee constitutes a material default of the Franchise Agreement, which could lead to termination of the agreement. The National Accounts Program fee, determined by Boulder Designs, is 20% of the Gross Revenue or another amount from the National Accounts projects. This fee is retained by Boulder Designs for obtaining the project and for administrative costs related to the project. The franchisee is obligated to pay this fee for all future revenues received from such an account as a repeat customer.

This means that if a Boulder Designs franchisee participates in the National Accounts program and receives revenue from a National Account project, they must pay the National Accounts Fee to Boulder Designs. This fee is a percentage of the gross revenue from the project. If the franchisee fails to pay this fee, it is considered a serious breach of the Franchise Agreement.

The consequence of not paying the National Accounts Fee is significant, as it gives Boulder Designs the right to terminate the Franchise Agreement. This could result in the franchisee losing their franchise and the associated business. Franchisees should ensure they understand the terms of the National Accounts program and the payment obligations to avoid defaulting on the agreement.

It is important for prospective Boulder Designs franchisees to carefully review the terms of the Franchise Agreement and National Headstone Program Agreement, particularly the sections related to fees and payment obligations. Understanding these obligations is crucial to maintaining a good standing with Boulder Designs and avoiding potential termination of the agreement.