What information must a Boulder Designs franchisee provide regarding local advertising expenditures?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, while a specific amount is not mandated, Boulder Designs highly recommends that franchisees spend a minimum of 10% of their annual gross revenues on local advertising.
Regardless of the amount spent, Boulder Designs requires franchisees to furnish an accurate accounting of their local advertising expenditures for the preceding one-year period. This accounting must be provided by January 31st of each year, after the franchisee has begun operations.
This requirement allows Boulder Designs to monitor franchisees' marketing efforts and ensure brand consistency. While the 10% spend is recommended, the mandatory reporting ensures that Boulder Designs has visibility into how franchisees are promoting their businesses locally, which can inform support and guidance from the franchisor. This is a fairly standard practice in franchising, allowing franchisors to maintain brand standards and offer marketing support effectively.