What is the maximum amount the Boulder Designs Technology Fee could be in the future, considering the annual increase?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
h 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.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the Technology Fee is currently $65 per month but can increase to $175 per month. Boulder Designs reserves the right to increase this fee each calendar year by a maximum of 10% of the prior year's fee.
For a prospective Boulder Designs franchisee, this means the Technology Fee could potentially increase significantly over the term of the franchise agreement. While currently between $65 and $175 per month, the 10% annual increase could result in a much higher fee in future years. This fee is for the development and use of online and system technology, including internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future.
It's important to note that Boulder Designs must provide 10 days' notice of any increase to the then-current monthly Technology Fee. A franchisee should factor in potential increases to the Technology Fee when projecting their operating expenses. It would be prudent for a prospective franchisee to inquire about the anticipated trajectory of technology investments and how these will benefit franchisees to justify the fee increases.