If Boulder Designs successfully completes an agreement with a National Accounts program in a franchisee's territory, what percentage of gross revenues must the Boulder Designs franchisee pay?
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, if Boulder Designs successfully completes an agreement with a National Accounts program in a franchisee's territory, the franchisee will pay Boulder Designs 15% of the gross revenues received from the sale of National Accounts projects assigned to them. This applies if the franchisee chooses to participate in the National Accounts program. The FDD specifies that gross revenue includes all income received from customers for goods and services, including revenue from National Accounts.
However, the franchisee is not obligated to participate in the National Accounts program. If a franchisee chooses not to participate or refuses a National Accounts project in their territory, Boulder Designs has the right to assign the project to another franchisee or its affiliate. In this case, the original franchisee will not receive any compensation for the project, even if it is completed within their territory. Boulder Designs does not offer any compensation or finder's fees for acquiring or participating in National Accounts.
An exception to the 15% National Accounts Fee exists under the National Headstone Program. Under this program, Boulder Designs collects the project deposit and provides the franchisee with design, proof, and customer information. Boulder Designs keeps the project deposit, and the franchisee receives the remaining balance for the project. Gross revenue collected for the National Headstone Program is not subject to the 15% National Accounts Fee.
Additionally, the table in Item 6 lists a "National Accounts Fee" of 20% of Gross Revenues, due around the first day of each month. It is important to note the discrepancy between the 15% mentioned in the note and the 20% listed in the table. A prospective franchisee should seek clarification from Boulder Designs regarding which percentage applies and under what circumstances.