How often during the Term must a Boulder Designs franchisee pay the Marketing Fee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to use Marketing Fee monies, in its sole discretion, to pay for creative development services (including creation and modification of logos, graphics and vehicle wraps), preparing or procuring market studies, providing or obtaining marketing services (including, without limitation, conducting client surveys, focus groups, and client interviews), developing, producing, distributing and placing advertising (including, without limitation, developing and producing point-of-sale advertising and promotional materials); developing product packaging, developing, updating and hosting Franchisor's website (including development of interior pages featuring franchised and Franchisor or Affiliate-owned businesses operating under the BOULDER DESIGNS System and Marks and developing locator programs) and/or an intranet or extranet system, obtaining sponsorships and endorsements, preparing and conducting sweepstakes and other promotions, providing and procuring public relations services, conducting public relations activities, creating or placing advertisements to solicit new franchise sales, including Internet advertising and information concerning franchise opportunities, to create and maintain one or more pages on Franchisor's website devoted to advertising franchise opportunities and identifying and screening inquiries and applications submitted by franchise candidates. Franchisor also may use Marketing Fee monies to reimburse itself for its costs of personnel and other administrative and overhead costs associated with providing the services described in this Section 11.2.
The Marketing Fee is not a trust or escrow, and neither we nor our affiliates have any fiduciary obligation for administering the Marketing Fee or for any other reason.
The parties acknowledge that Franchisor owns all rights, and retains all copyrights, in all design and content developed using Marketing Fee monies, and that Franchisor will have sole control over the creative concepts, content, form, and media placement of all advertising and promotional materials developed with these monies, and the allocations of Marketing Fee monies to production, placement and other costs. Franchisor will own all copyright in any works created using Marketing Fee monies. Franchisee acknowledges and agrees that Franchisor is not obligated to expend Marketing Fees for placement of advertising in Franchisee's Territory, or to ensure that the Franchised Business benefits directly or pro rata from the expenditure of Marketing Fees. Franchisor has no fiduciary duty to Franchisee or to any other person with respect to the collection or expenditure of Marketing Fees.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
The 2025 Boulder Designs Franchise Disclosure Document does not specify the payment frequency for the Marketing Fee. The document describes how Boulder Designs uses the marketing fees it collects from franchisees. It states that the marketing fee is not held in trust or escrow, and Boulder Designs has no fiduciary duty regarding its administration or expenditure. Boulder Designs owns all rights and copyrights to designs and content developed using marketing fee funds and has sole control over advertising and promotional materials. Boulder Designs is not obligated to spend marketing fees in a franchisee's territory or ensure direct benefits to the franchisee.
While the FDD details the franchisor's rights regarding the use of marketing fees, it does not explicitly state how often a franchisee must pay the marketing fee.
A prospective Boulder Designs franchisee should ask the franchisor directly about the payment schedule for the marketing fee, as this information is not provided in the excerpts from the 2025 FDD.