What is the Insufficient Funds Fee charged by Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee2,4 | The greater of: (i) The percentage of Collected Gross Revenue in accordance with the following schedule: 7% of Gross Revenue Or (ii) The minimum monthly Royalty Fee in accordance with the following schedule: Year 1 - $750/month Year 2 - $950/ month Year 3 thru remainder of term $1,500/month | First day of each month | |
| National Accounts Fee3 | 20% of Gross Revenues4 | On or around the first day of each month | |
| 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. |
| Insufficient Funds Fee | $100 per incident | Upon demand | Applies to all non-approved (ACH Debit) or returned payments made by you that do not fund or clear you bank for any reason w |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the Insufficient Funds Fee is $100 per incident. This fee is charged when a payment made by the franchisee via ACH Debit is not approved or is returned due to insufficient funds or any other reason that prevents the payment from clearing the bank. The fee is due upon demand.
For a prospective Boulder Designs franchisee, this means that if a payment is rejected due to insufficient funds, they will be required to pay a $100 fee in addition to the original amount owed. This fee is in place to cover the administrative costs and potential financial losses incurred by Boulder Designs due to the failed payment.
It is important for franchisees to ensure they have sufficient funds available when payments are due to avoid incurring this fee. Franchisees should also be aware of the due dates for all payments to Boulder Designs to prevent late fees or other penalties. This is a fairly standard fee in franchising and business in general, as it covers the costs associated with handling failed payments.