Does Boulder Designs provide material benefits to franchisees, such as renewal or granting additional franchises, based on their purchase of particular products or services or use of particular suppliers?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide material benefits to you (for example, renewal or granting additional franchises) based on your purchase of particular products or services or use of particular suppliers.
We may negotiate purchase arrangements with primary suppliers for the benefit of franchisees, and receive rebates or other material benefits on account of franchisee purchases or leases. If we negotiate a purchase agreement for the region where your Boulder Designs Business is located, you must participate in the purchasing program.
We currently have a purchasing agreement with a third-party supplier for certain supplies, including paint and paint supplies. We receive a rebate between 2% and 4% on these supplies purchased by franchisees from this supplier.
During our fiscal year ending December 31, 2024, Franchisor's total revenue based on the most recent audited financial statements states we derived $1,032,504 in revenue as a result of required purchases and leases, representing approximately 44.3% of our total revenue of $2,329,797.
We estimate that required purchases and leases (meaning purchases and leases from us, our designated suppliers and purchases and leases of items meeting our specifications) will account for approximately 58% of your purchases and leases in establishing the Boulder Designs Business and approximately 25% of your purchases and leases in operating the Boulder Designs Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs does not provide material benefits to franchisees, such as renewal or granting additional franchises, based on their purchase of particular products or services or use of particular suppliers.
However, Boulder Designs does negotiate purchase arrangements with primary suppliers for the benefit of franchisees and may receive rebates or other material benefits on account of franchisee purchases or leases. If Boulder Designs negotiates a purchase agreement for the region where a franchisee's Boulder Designs Business is located, the franchisee must participate in the purchasing program. Currently, Boulder Designs has a purchasing agreement with a third-party supplier for certain supplies, including paint and paint supplies, and receives a rebate between 2% and 4% on these supplies purchased by franchisees from this supplier.
The FDD also states that Boulder Designs and its affiliates derive revenue from franchisee purchases and leases to the extent that franchisees purchase or lease directly from Boulder Designs' affiliates and itself. During the fiscal year ending December 31, 2024, Boulder Designs derived $1,032,504 in revenue as a result of required purchases and leases, representing approximately 44.3% of its total revenue of $2,329,797. Boulder Designs estimates that required purchases and leases will account for approximately 58% of a franchisee's purchases and leases in establishing the Boulder Designs Business and approximately 25% of their purchases and leases in operating the Boulder Designs Business.