What is the obligation of a Boulder Designs franchisee regarding local advertising expenditures?
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. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, while not strictly mandated, Boulder Designs highly recommends that franchisees allocate a minimum of 10% of their annual gross revenues towards local advertising initiatives. This recommendation suggests that Boulder Designs believes local marketing is crucial for the success of individual franchise locations.
Furthermore, Boulder Designs requires franchisees to furnish an accurate accounting of their local advertising expenditures for the preceding year by January 31st of each year, irrespective of the amount spent. This reporting requirement allows Boulder Designs to monitor advertising efforts across its franchise network and potentially offer guidance or support to franchisees in optimizing their local marketing strategies.
While the 10% spend is recommended, the obligation to report advertising spend is mandatory. This allows Boulder Designs to track advertising spend across the franchise system. Prospective franchisees should consider this recommended advertising expenditure when evaluating the overall costs and potential profitability of a Boulder Designs franchise.