Does Boulder Designs have a local or regional advertising cooperative that franchisees must participate in?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not have a local or regional advertising cooperative in which the franchisee must participate.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are not required to participate in a local or regional advertising cooperative. However, Boulder Designs does have the right to operate a marketing program for the general benefit of the Boulder Designs system. Currently, the monthly marketing fee is $0, but Boulder Designs has the right to increase it up to $200 per month with 30 days' prior notice. This cap can increase each calendar year by an amount not to exceed 10% of the prior year's cap.
Boulder Designs retains significant control over advertising and promotion. All advertising and promotions must receive written approval from Boulder Designs in advance, with a 30-day review period. Franchisees are highly encouraged to spend at least 10% of annual gross revenue on local advertising that conforms to Boulder Designs' standards. Franchisees must also provide an accurate accounting of local advertising expenditures to Boulder Designs by January 31st of each year.
While Boulder Designs does not mandate participation in advertising cooperatives, franchisees should be aware of the potential for a marketing fee of up to $200 per month, which can increase annually. They should also factor in the recommended 10% of annual gross revenue for local advertising, which is subject to franchisor approval. Prospective franchisees should inquire about the current expectations for local advertising spend and the process for advertising approval to fully understand these requirements.