For a new Boulder Designs franchisee, what is the minimum royalty fee for months 13-24?

According to Boulder Designs' 2025 Franchise Disclosure Document, new franchisees have a royalty fee structure that includes a minimum royalty fee. For the initial twelve months after opening, the minimum royalty fee is $750. After this initial period, for months 13 through 24, the minimum royalty fee increases to $950 per month. After month 24, the minimum royalty fee increases again to $1,500 per month for the remainder of the franchise term.

This minimum royalty fee is paid if it exceeds 7% of the collected gross revenue for the previous month. If 7% of the collected gross revenue is higher than the minimum royalty fee for that period, the franchisee pays the 7% instead. This ensures that Boulder Designs receives a royalty payment that reflects either a percentage of the franchisee's sales or a set minimum amount, whichever is greater.

It's important to note that these royalty fees are subject to potential increases, as detailed in Section 3.2 of the franchise agreement. This means that the $950 minimum royalty fee for months 13-24 could increase over the term of the agreement, potentially impacting the franchisee's financial obligations. A prospective franchisee should carefully review Section 3.2 to understand the conditions under which royalty fees may increase.