Can Boulder Designs profit from the 'Approved Suppliers' that franchisees are required to use?

Based on the 2025 Franchise Disclosure Document, the FDD does not explicitly state whether Boulder Designs receives any financial benefit from the 'Approved Suppliers' that franchisees are required to use. The document defines 'Approved Suppliers' as companies and vendors that Boulder Designs approves to provide services, product items, supplies, signs, equipment, and other items and services, and that comply with Boulder Designs' specifications and quality standards. Boulder Designs will provide franchisees with a list of these Approved Suppliers in the Manual or other written or electronic form.

While the FDD mandates the use of approved suppliers to maintain quality and consistency across all Boulder Designs franchises, it remains unclear whether Boulder Designs receives any direct or indirect compensation, such as rebates or commissions, from these suppliers. Franchisees are required to purchase from these suppliers, but the financial relationship between Boulder Designs and its approved vendors is not disclosed in this section.

A prospective Boulder Designs franchisee should seek clarification from the franchisor regarding any potential financial benefits Boulder Designs receives from the Approved Suppliers. Understanding this aspect of the franchise agreement is crucial for making an informed investment decision, as it could affect the franchisee's costs and the overall profitability of their Boulder Designs business.