What is the maximum annual Minimum Gross Revenue requirement that Boulder Designs can impose?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
r within your Territory.
Currently continuation of your territorial protection does not depend on your achieving any certain sales volume, market penetration, or other contingency. However, we have the right to implement a Minimum Gross Revenue requirement by providing you at least 30 days' advance written notice. We do not currently impose such a requirement, but, if imposed, we anticipate that the Minimum Gross Revenue Requirement will not exceed $30,000 annually and your failure to meet the requirement may result in an obligation to attend re-boot training at your expense. If you refuse to attend re-boot training when we require, you will be granted thirty (30) days to cure this default. If you are not able to cure this default within the 30-day period, we have the right to terminate the Franchise Agreement.
The boundaries of your territory may be altered only by mutual consent, but we have the unilateral right to convert a Separate Territory into a Shared Territory in our sole discretion. A Separate Territory may be converted into a Shared Territory should you fail to meet a minimum performance target or minimum gross revenue requirement as mentioned above. Such Shared Territory would consist of a population greater than 450,000. We do not offer any options, rights of first refusal, or similar rights to acqui
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor has the right to implement a Minimum Gross Revenue requirement for franchisees. While Boulder Designs does not currently impose such a requirement, if they choose to do so, the FDD states that it will not exceed $30,000 annually. Boulder Designs will provide at least 30 days' advance written notice before implementing this requirement.
If a franchisee fails to meet the Minimum Gross Revenue requirement, Boulder Designs may require them to attend re-boot training at the franchisee's expense. The franchisee will be granted thirty (30) days to cure this default. If the franchisee refuses to attend re-boot training or is unable to cure the default within the 30-day period, Boulder Designs has the right to terminate the Franchise Agreement.
Additionally, failure to meet a minimum gross revenue requirement could result in the conversion of a Separate Territory into a Shared Territory. This means that Boulder Designs could grant other franchisees the right to operate Boulder Designs businesses within the same territory. This change could significantly impact a franchisee's business, as it introduces direct competition within their previously protected area.