When is the Boulder Designs National Accounts Fee due?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 each month | | | National Accounts Fee3 | 20% of Gross Revenues4 | On or around the first day of each month | | Note 3. We may market and negotiate National Account programs to serve clients across territories and often from multiple franchisees. If we negotiate such National Accounts and if you choose to participate in the National Accounts program, and if we successfully complete an agreement with a National Accounts program in your Territory, you will pay us 15% of the Gross Revenues you received from the sale from the National Accounts projects assigned to you. Additionally, if you choose to participate in the National Account program, and if we agree to terms with any National Account, you must provide products and services to all valid members of the National Account on those prices and terms we may require. If you do not participate in the National Accounts program or refuse a National Accounts project in your Territory, we have the uninhibited right to utilize another Boulder Designs franchisee or assign the project to our affiliate and you are not entitled to any compensation if we or another franchisee provides such services in your Territory We do not offer any compensation or finder's fees to you with respect to either acquiring National Accounts, your participation in National Accounts, or another party fulfilling National Accounts projects in your Territory. Currently we offer a National Headstone Program and under the National Headstone Program, we will collect the project deposit (based on the total project cost, template and material selected by the customer) and provide you with design, proof, customer information. We will keep the project deposit and you will have the right to the remaining balance for the project. Gross revenue collected for the National Headstone Program shall not be subject to 15% National Accounts Fee as mentioned in this Item 6. Note 4. "Gross Revenues" means the aggregate of all income and monthly fees Franchisee receives from customers for the purchase or provision of any goods or services, including enrollment fees, or any other person or business entity for the Franchised Business in connection with the Franchised Business (whether or not in accordance with the terms of the Franchise Agreement) and whether for check, cash, credit or otherwise, from the sale of products and services (including service charges in lieu of gratuity) regardless of the dollar amount Franchisee sells each product or service for, including, without limitation, all proceeds from any business interruption insurance and any revenue generated from National Accounts, but excluding (a) all insurance payments, check, cash, credit or debit card refunds made in good faith provided, prior to granting the refunds, the revenue related to the refunds was included in Gross Revenues, (b) any sales and equivalent taxes that Franchisee collects for or on behalf of and pay to any governmental taxing authority, and (c) any rebate Franchisee receives from a manufacturer or supplier.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the National Accounts Fee is due on or around the first day of each month. This fee is 20% of Gross Revenues. Gross Revenues include all income received from customers for goods or services, including revenue from National Accounts. However, the gross revenue collected for the National Headstone Program is not subject to the 15% National Accounts Fee.
This means that if a Boulder Designs franchisee participates in the National Accounts program, they must remit 20% of the gross revenues earned from those accounts to Boulder Designs around the first of each month. It is important to note that this fee is calculated based on total revenues before deductions for refunds, taxes, or manufacturer rebates.
Prospective franchisees should carefully consider the implications of the National Accounts Fee on their potential profitability. While participating in the National Accounts program could provide access to a larger customer base and increased revenue, the 20% fee will reduce the franchisee's profit margin on those sales. Franchisees should evaluate whether the potential increase in sales volume justifies the associated fee. It's also important to understand the specific terms and conditions of the National Accounts program, including any requirements for pricing or service standards.
It is also important to note that if a franchisee does not participate in the National Accounts program or refuses a National Accounts project in their territory, Boulder Designs has the right to utilize another Boulder Designs franchisee or assign the project to their affiliate. In this case, the original franchisee is not entitled to any compensation even if the services are provided within their territory.