How will Boulder Designs notify franchisees of increases in the monthly Marketing Fee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Technology Fee5 | Currently $65 per month, but up to $175 per month. We reserve the right to increase each calendar year by an amount not to exceed 10% of the prior year's fee. | Monthly | For the development and use of online and System technology, including but not limited to internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future. |
| Recommended Local Advertising Spend | 10% of Annual Gross Revenues | As invoiced | We highly recommend you spend a minimum of 10% of annual gross revenues on local advertising. After you have begun operations, by the 31st of January of each year, you must furnish us an accurate accounting of your expenditures on local advertising for the preceding one-year period regardless of the amount spent. |
| Marketing Fee | Currently $0 per month | Monthly | We anticipate charging an amount no greater than $200 per month once implemented. We will provide you with prior notice before any increases in the monthly Marketing Fee are imposed. Once this fee is implemented the fee cap will increase each calendar year by an amount not to exceed 10% of the prior y |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the company will provide franchisees with prior notice before implementing any increases to the monthly Marketing Fee. Currently, the Marketing Fee is $0 per month, but Boulder Designs anticipates charging up to $200 per month once implemented.
It's important to note that once the marketing fee is implemented, the fee cap can increase each calendar year by an amount not to exceed 10% of the prior year's cap. This means that while the initial fee is capped at $200, it could gradually increase over time, but no more than 10% annually.
Prospective franchisees should clarify with Boulder Designs what form the 'prior notice' will take (e.g., email, letter) and how far in advance the notice will be given. Understanding the timing and method of notification is crucial for budgeting and financial planning. Franchisees should also inquire about the specific circumstances under which the Marketing Fee will be implemented, as it is currently $0 per month.