What is the minimum monthly Royalty Fee for a Boulder Designs franchise from Year 3 onwards?
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. From Year 3 through the remainder of the franchise term, the minimum monthly royalty fee is $1,500. This fee is due on the first day of each month.
In practical terms, this means that even if a Boulder Designs franchise location has low sales in a particular month during Year 3 or later, the franchisee must still pay a minimum royalty fee of $1,500. This could impact the franchisee's profitability, especially during slow months or if the business is not performing as expected. It is important for prospective franchisees to factor this minimum fee into their financial projections and ensure they have sufficient cash flow to cover it.
It's also important to note that the royalty fee is the greater of 7% of gross revenue or the minimum monthly fee. If 7% of a franchisee's gross revenue exceeds $1,500 in any given month, the franchisee will owe the higher amount as the royalty fee. Franchisees should carefully consider their potential revenue and how it relates to this royalty structure. The FDD also notes that Boulder Designs may periodically limit the size of products offered or condition the right to offer certain products on compliance with guidelines or payment of additional fees.