If a Boulder Designs franchisee understates the amounts due, what fee applies?

Question

Accepted Answer

| Name of Fee                               | Amount1                                                                                                   | Due Date                  | Remarks                                                                                                                                                                                                                                                                                                                                                        |
|-------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Technology Fee5 | Currently \$65 per month, but up to \$175 per month. We reserve the right to increase each calendar year by an amount not to exceed 10% of the prior year's fee. | Monthly | For the development and use of online and System technology, including but not limited to internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future. |
| Recommended Local Advertising Spend | 10% of Annual Gross Revenues | As invoiced | We highly recommend you spend a minimum of 10% of annual gross revenues on local advertising. After you have begun operations, by the 31st of January of each year, you must furnish us an accurate accounting of your expenditures on local advertising for the preceding one-year period regardless of the amount spent. |
| Marketing Fee | Currently \$0 per month | Monthly | We anticipate charging an amount no greater than \$200 per month once implemented. We will provide you with prior notice before any increases in the monthly Marketing Fee are imposed. Once this fee is implemented the fee cap will increase each calendar year by an amount not to exceed 10% of the prior year's cap. |
| Late Fees | \$100 per incident | 11th day of each month | Applies to all overdue Royalty Fees, and other amounts due to us. Also applies to any understatement in amounts due revealed by an audit. Late fees will continue to accrue each month when balances due from previous months carry over into the current month.

Source: Item 6 — OTHER FEES (FDD pages 11–16)

If a Boulder Designs franchisee understates the amounts due, what fee applies?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Name of Fee	Amount1	Due Date	Remarks
Technology Fee5	Currently $65 per month, but up to $175 per month. We reserve the right to increase each calendar year by an amount not to exceed 10% of the prior year's fee.	Monthly	For the development and use of online and System technology, including but not limited to internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future.
Recommended Local Advertising Spend	10% of Annual Gross Revenues	As invoiced	We highly recommend you spend a minimum of 10% of annual gross revenues on local advertising. After you have begun operations, by the 31st of January of each year, you must furnish us an accurate accounting of your expenditures on local advertising for the preceding one-year period regardless of the amount spent.
Marketing Fee	Currently $0 per month	Monthly	We anticipate charging an amount no greater than $200 per month once implemented. We will provide you with prior notice before any increases in the monthly Marketing Fee are imposed. Once this fee is implemented the fee cap will increase each calendar year by an amount not to exceed 10% of the prior year's cap.
Late Fees	$100 per incident	11th day of each month	Applies to all overdue Royalty Fees, and other amounts due to us. Also applies to any understatement in amounts due revealed by an audit. Late fees will continue to accrue each month when balances due from previous months carry over into the current month.