If a Boulder Designs franchisee participates in the National Accounts program, what obligation do they have regarding pricing and terms for National Account members?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3. We may market and negotiate National Account programs to serve clients across territories and often from multiple franchisees. If we negotiate such National Accounts and if you choose to participate in the National Accounts program, and if we successfully complete an agreement with a National Accounts program in your Territory, you will pay us 15% of the Gross Revenues you received from the sale from the National Accounts projects assigned to you. Additionally, if you choose to participate in the National Account program, and if we agree to terms with any National Account, you must provide products and services to all valid members of the National Account on those prices and terms we may require. If you do not participate in the National Accounts program or refuse a National Accounts project in your Territory, we have the uninhibited right to utilize another Boulder Designs franchisee or assign the project to our affiliate and you are not entitled to any compensation if we or another franchisee provides such services in your Territory We do not offer any compensation or finder's fees to you with respect to either acquiring National Accounts, your participation in National Accounts, or another party fulfilling National Accounts projects in your Territory. Currently we offer a National Headstone Program and under the National Headstone Program, we will collect the project deposit (based on the total project cost, template and material selected by the customer) and provide you with design, proof, customer information. We will keep the project deposit and you will have the right to the remaining balance for the project. Gross revenue collected for the National Headstone Program shall not be subject to 15% National Accounts Fee as mentioned in this Item 6.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees who opt into the National Accounts program must adhere to the pricing and terms established by Boulder Designs for National Account members. Specifically, if Boulder Designs reaches an agreement with a National Account, participating franchisees are obligated to provide products and services to all valid members of that National Account under the prices and terms mandated by Boulder Designs.
This requirement ensures uniformity and consistency in service delivery across the Boulder Designs network for National Account clients. However, it also means that franchisees may have limited control over pricing and terms for these specific accounts, potentially impacting their profit margins on National Account projects. Franchisees should carefully consider the implications of these terms before choosing to participate in the National Accounts program.
It's important to note that Boulder Designs retains the right to utilize another franchisee or assign the project to an affiliate if a franchisee declines to participate in a National Accounts project within their territory. In such cases, the original franchisee is not entitled to any compensation, highlighting the importance of carefully evaluating each National Accounts opportunity presented by Boulder Designs. Additionally, Boulder Designs does not offer any compensation or finder's fees to franchisees for acquiring or participating in National Accounts, or for another party fulfilling National Accounts projects in their territory.