What does the Boulder Designs National Accounts Program fee cover?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ime, Franchisor may authorize the Franchisee, other BOULDER DESIGNS franchisees, Franchisor itself, or other qualified third-parties to provides the services to the National Account.
Franchisor retains all rights to the projects of National Accounts, including invoicing, processing, and making disbursements related to the National Accounts projects. If a Franchisee chooses to participate in the National Accounts program, and if Franchisor successfully completes a project of a National Accounts program in Franchisee's Territory, Franchisor shall make the appropriate disbursement to Franchisee minus 20% of the Gross Revenues or any other amount, or method as designated at the sole discretion of the Franchisor pursuant to the terms of specific National Account derived from the National Accounts project. This National Accounts Program fee as determined by the Franchisor 20% of the Gross Revenue or otherwise from the National Accounts projects shall be retained by Franchisor as a fee for obtaining the project and for administrative costs related to the project. Franchisee shall be obligated to pay this National Accounts Fee to the franchisor for all future revenues received from such account as a repeat customer. Failure to pay this fee on current or future projects from National Accounts Program client shall be a material default of this Agreement and subject to Franchisor's right to terminate the Agreement.
If, before commencement of the National Accounts project, Franchisee refuses to or is unable to (per Franchisor's sole discretion) perform a National Accounts project, Franchisor retains the full right to assign the project to any other BOULDER DESIGNS franchisee or to its affiliate.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the National Accounts Program fee, which is 20% of the Gross Revenue or another amount determined by Boulder Designs, covers the cost of obtaining the project and administrative costs related to the project. This fee is retained by Boulder Designs. Franchisees are obligated to pay this fee for all future revenues received from such an account as a repeat customer. Failure to pay this fee on current or future projects from National Accounts Program clients constitutes a material default of the Franchise Agreement and may result in termination of the agreement.
For franchisees participating in the National Headstone Program, Boulder Designs collects a deposit per project instead of the 20% National Accounts Fee. This deposit is based on the template and materials selected by the customer and can vary based on the total project cost. Upon the franchisee's acceptance and completion of the project, they are entitled to the remaining balance for the project.
Boulder Designs retains the Project Deposit as a national headstone accounts fee for revenue generated inside and outside the franchisee's territory as a result of the lead provided by Boulder Designs and the sale from the National Headstone Program projects assigned to the franchisee. This fee covers obtaining the project, maintaining the website for the National Headstone Program, marketing the services to continuously obtain more leads for the participant franchisees, and the administrative costs related to the National Headstone Program.
It is important for prospective franchisees to understand how the National Accounts Program operates, including the fees involved and the obligations for servicing national accounts. Franchisees should also be aware of the potential consequences of failing to pay the National Accounts Fee. Additionally, franchisees should clarify with Boulder Designs any specific details regarding the determination of the National Accounts Program fee and the allocation of responsibilities between the franchisor and franchisee in fulfilling national account projects.