If a Boulder Designs franchisee participates in the National Headstone Program, do they receive additional compensation?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
further acknowledges that the Franchisor has incurred significant costs and expenses in development of national website and marketing services related to engraved rocks and custom boulders for a cemetery headstone ("National Headstone Program").
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- Franchisor and Franchisee hereby agree to the following terms as they relate to the National Headstone Program:
- a. Territory. Franchisee hereby further acknowledges and understands that the National Headstone Program implemented by the Franchisor, provides Franchisor the right to solicit and obtain certain projects that may be located anywhere, including Franchisee's granted Territory.
- b. National Headstone Program. Franchisee further acknowledges and agrees that pursuant to the Franchise Agreement, if Franchisor obtains a National Headstone Program project in the Territory, Franchisor may, but is not obligated to, offer the project to Franchisee for execution and completion. If Franchisor makes such an offer, Franchisee agrees to service the National Headstone Program customer under the same terms, pricing, and provisions negotiated for the National Headstone Program, and the Franchisee shall not receive any additional compensation for participation in the 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees do not receive additional compensation for participating in the National Headstone Program. While franchisees are obligated to participate in any National Accounts program, including the National Headstone Program, they service these customers under the same terms, pricing, and provisions negotiated for the program itself. This means that the franchisee's compensation is already determined within the pre-set structure of the National Headstone Program, and they will not receive any extra payments or finder's fees for their involvement.
Boulder Designs, however, will collect a deposit per project, with the amount varying based on the template and materials selected by the customer. This deposit is collected before the design proof and customer information are sent to the franchisee for creation and construction. The franchisee is then entitled to the remaining balance for the project, which is the gross revenue per project minus the project deposit paid to Boulder Designs. This deposit is considered a National Headstone Accounts Fee, which Boulder Designs retains for revenue generated inside and outside the franchisee's territory.
This fee covers the costs associated with obtaining the project, maintaining the website for the National Headstone Program, marketing the services, and the administrative costs related to the program. The franchisee is responsible for communicating with the customer to complete the project per the design and specifications, and they must deliver and install the product at the customer's requested location, for which they may charge a reasonable fee. Boulder Designs may also reach out to the customer to ensure satisfaction and provide a lifetime warranty, though they are not obligated to do so.