May Boulder Designs require the franchisee's financial institution to send monthly statements of account activity directly to the franchisor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
At Franchisor's request, Franchisee shall authorize and direct any third parties, including accounting, banking and legal professionals and tax authorities, to release to Franchisor all accounting and financial records arising from or relating to the operation of the Franchised Business including, but not limited to, records evidencing Gross Revenue, profits, losses, income, tax liabilities, tax payments, including federal, state and local tax returns, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis for the length of the unexpired term of this Agreement plus three years or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, under Section 12.8, Boulder Designs has the right to request that franchisees authorize their accounting, banking, and legal professionals, as well as tax authorities, to release all accounting and financial records related to the operation of the franchised business.
These records include, but are not limited to, those evidencing gross revenue, profits, losses, income, tax liabilities, and tax payments, including federal, state, and local tax returns. The authorization extends to any correspondence, notes, memoranda, audits, business records, or internal accounts held by these third parties.
Furthermore, Boulder Designs can request that these records be released on a monthly basis for the duration of the franchise agreement, plus an additional three years, or until Boulder Designs withdraws the request. The franchisee is obligated to execute all necessary documents to facilitate the release of these records to Boulder Designs.