Is participation in the Boulder Designs National Accounts program mandatory?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
e: FRANCHISEE: By: Name:
LANDLORD:
Title:
By:
Name:
Boulder Designs® 3 Title:
NATIONAL HEADSTONE PROGRAM
| of, 20 | , by and among Boulder Designs Franchising, LLC ("BOULDER DESIGNS"), |
|---|---|
| a Texas limited liability company, and [FRANCHISEE NAME], an adult individual of state of [STATE] | |
| ("Franchisee") and("Guarantors"). | |
| RECITALS |
WHEREAS, simultaneously with the execution of this Agreement, Franchisor and Franchisee are entering into a franchise agreement (the "Franchise Agreement") for the operation of a Boulder Designs franchise;
WHEREAS, pursuant to the Franchise Agreement, Franchisee has an obligation to participate in any National Accounts program by the Franchisor;
WHEREAS, currently Franchisor has implemented a certain headstone program, upon which franchisor will generate and provide Franchisee with leads for creation of a headstone in Franchisee's Territory (as the term is defined in the Franchise Agreement), in lieu of certain fees charged by the Franchisor; and
WHEREAS, the Franchisor desires to grant you the right to participate, and you desire to patriciate in the national headstone program, pursuant to the terms and conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration for the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties amend the Agreement and agree as follows:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, participation in the general National Accounts program is optional, but participation in the National Headstone Program is mandatory. Boulder Designs franchisees are not obligated to accept National Accounts projects offered by the franchisor. The franchisor may offer these projects, but the franchisee can refuse. However, franchisees must participate in the National Headstone Program simultaneously with the execution of the Franchise Agreement by executing the National Headstone Program Agreement.
If a Boulder Designs franchisee chooses to participate in a National Accounts project (excluding the National Headstone Program) and the franchisor successfully completes the project in the franchisee's territory, the franchisor will disburse the appropriate payment to the franchisee, minus 20% of the gross revenues. This 20% fee, or any other amount or method designated by Boulder Designs, is retained by the franchisor for obtaining the project and for administrative costs. The franchisee is obligated to pay this fee for all future revenues received from that account as a repeat customer. Failure to pay this fee for current or future projects from a National Accounts Program client constitutes a material default of the agreement and may lead to termination.
For the National Headstone Program, instead of the 20% National Accounts Fee, Boulder Designs has the right to collect a deposit per project. The deposit amount varies based on the template and materials selected by the customer and the total project cost. Upon the franchisee's acceptance and completion of the project, the franchisee is entitled to the remaining balance. However, Boulder Designs retains the right to authorize other franchisees or qualified third parties to provide services within the franchisee's territory if the franchisee is deemed incapable of servicing the customer or if the service volume exceeds demand. In such cases, the franchisee does not have the right to be compensated for services provided by others within their territory.
Boulder Designs also reserves the right to negotiate directly with national clients for the provision of goods and services by all franchisees under the National Headstone Program or any future national accounts programs. Boulder Designs can also terminate or change the terms of the National Headstone Program with written notice to the franchisee. Franchisees are responsible for repair or replacement work for National Headstone Program customers they service, within thirty days, subject to reasonable work conditions. They are also responsible for the costs of materials, overhead, and labor required to meet Boulder Designs' standards. If the franchisee fails to make necessary repairs or replacements, Boulder Designs may arrange for such repairs and charge the franchisee for the associated costs.