What is the 'Project Deposit' in the Boulder Designs National Headstone Program?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
As of the Effective Date of this Agreement, Franchisor will collect a deposit due per project, which is based on template and materials selected by the customer which could vary based on the total project cost, prior to sending the design proof if one available and customer information to the Franchisee for creation and construction ("Project Deposit").
The Franchisor may provide the Franchisee with design proof and customer information, and the Franchisee shall be entitled to the remaining balance for the project which shall be gross revenue per project minus the Project Deposit paid to the Franchisor.
Franchisor shall retain the Project Deposit for revenue generated inside and outside the Franchisee's Territory as a result of the lead provided by the Franchisor and sale from the National Headstone Program projects assigned to the Franchisee as national headstone accounts fee ("National Headstone Accounts Fee").
Franchisee acknowledges that the National Headstone Accounts Fee is reasonable amount enforced by the Franchisor, as a fee for obtaining the project, maintaining the website for the National Headstone Program, heavily marketing the services to continuously obtain more leads for the participant franchisees, and for the administrative costs related to the National Headstone Program.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Project Deposit is a deposit collected by Boulder Designs for each project in the National Headstone Program. This deposit is based on the template and materials selected by the customer, and its amount can vary depending on the total project cost. Boulder Designs collects this deposit before sending the design proof (if available) and customer information to the franchisee for creation and construction.
Boulder Designs retains the Project Deposit as revenue generated from the National Headstone Program projects, both inside and outside the franchisee's territory. This deposit functions as the national headstone accounts fee. The franchisee is entitled to the remaining balance for the project, which is the gross revenue per project minus the Project Deposit paid to Boulder Designs.
The FDD specifies that the National Headstone Accounts Fee is considered a reasonable amount by Boulder Designs. It covers the costs of obtaining the project, maintaining the website for the National Headstone Program, marketing the services to generate leads, and the administrative costs associated with the program.
For a prospective Boulder Designs franchisee, this means that a portion of the revenue from National Headstone Program projects will be retained by Boulder Designs to cover their costs and efforts in managing the program. The franchisee should consider the potential impact of this fee on their overall profitability when evaluating participation in the National Headstone Program.