What happens if a Boulder Designs franchisee refuses a National Headstone Program project?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
in the Territory from a different franchisee or any other third party, Franchisor has the right to authorize another franchisee, designate or authorize a Franchisor or its affiliate's employee, Franchisor's affiliate, or any other third party to perform services for or sell products to said National Headstone Program customers inside the Territory. Franchisor is not obligated to pay nor the Franchisee shall be entitled to any compensation or finder's fees with respect to either acquiring National Headstone Program, Franchisee's participation in National Headstone Program, or another party including Franchisor fulfilling National Headstone Program projects in the Territory. In the event the Franchisee refuses to service a customer lead generated through the National Headstone Program, and later if the Franchisee services such client for products or services as offered under the National Headstone Program, regardless if the customer is within the Franchisee's Territory, the Franchisee shall be responsible for the payment of commission in the amount of 50% of gross revenue to the Franchisor and in addition the Franchisor in its sole discretion retains the right to terminate this this Agreement or Franchise Agreement at its sole discretion.
- h.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee refuses to service a customer lead generated through the National Headstone Program, but later services that client for products or services offered under the National Headstone Program, the franchisee is responsible for paying a commission to Boulder Designs. This commission is 50% of the gross revenue from that client.
Additionally, Boulder Designs retains the right to terminate the Franchise Agreement at its sole discretion if a franchisee refuses to service a lead and then later services the client. This gives Boulder Designs significant power to enforce participation in the National Headstone Program.
Furthermore, if a Boulder Designs franchisee refuses a National Headstone Program project before commencement, Boulder Designs retains the full right to assign the project to any other Boulder Designs franchisee or its affiliate. If the franchisee accepts a project but cannot complete it for any reason, they must reimburse Boulder Designs for any costs already spent on the project and any expenses incurred in reassigning the project.