What is the minimum monthly Royalty Fee for a Boulder Designs franchise in Year 1?
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 ea |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees must pay a royalty fee, which is the greater of a percentage of gross revenue or a minimum monthly fee. In the first year of operation, the minimum monthly royalty fee is $750. This fee is due on the first day of each month.
This means that even if a Boulder Designs franchise location has low sales in its first year, the franchisee must still pay at least $750 in royalties each month. This could impact the franchisee's profitability, especially during the initial months when the business is still growing and building a customer base.
In subsequent years, the minimum monthly royalty fee increases. It rises to $950 per month in Year 2, and then to $1,500 per month from Year 3 through the remainder of the franchise term. Therefore, it is essential for prospective franchisees to factor these escalating minimum royalty fees into their financial projections and business plans to ensure they can meet these obligations as their business matures.