Who is responsible for the costs of materials, overhead, and labor for repairs or replacements for Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
inistrative costs related to the National Headstone Program. Franchisee shall be solely responsible for collecting any additional information directly from a customer for creation and construction of the product. Franchisee shall be further responsible for finalizing the design for the customer and submitting the same to the Franchisor. Failure to submit the finalized design shall be considered a default of this Agreement.
- e. Standards. All work performed pursuant to this Agreement shall be done by the Franchisee in accordance with the operational systems, procedures, policies, methods and requirements as identified by the Franchisor.
- f. Repair or Replacement Products. Franchisee shall be responsible for providing any repair or replacement work for National Headstone Program customers Franchisee serviced. Franchisee shall make such repairs or replacements within thirty (30) days, subject to reasonable work conditions due to climate after Franchisee is served a valid claim from the customer. Franchisee shall be responsible for the costs of any materials, overhead, and/or labor required to bring the products within the standards prescribed by the Franchisor. In the event Franchisee fails to make any repairs or replacements as required hereunder, the Franchisor may undertake and/or arrange for such repair or replacements and charge Franchisee for the cost of effecting such repairs or replacements, including costs for labor, materials and overhead. Franchisor shall have the right to apply any payments by Franchisee to any past due indebtedness of Franchisee including payments under the Franchise Agreement in any proportion or priority. .
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisee is responsible for the costs associated with repairs or replacements. Specifically, the franchisee bears the costs of materials, overhead, and labor required to bring the products up to Boulder Designs' standards. This applies to repair or replacement work for customers serviced under the National Headstone Program as well as National Account projects.
This means that if a Boulder Designs product needs repair or replacement, the franchisee must cover all associated expenses. The franchisee is expected to complete these repairs or replacements within thirty days, provided reasonable working conditions exist due to climate. Failure to meet these obligations allows Boulder Designs to undertake the repairs or replacements themselves and charge the franchisee for all resulting costs, including labor, materials, and overhead.
This arrangement places a significant financial responsibility on the Boulder Designs franchisee. It is important to note that these costs can arise from both the National Headstone Program and National Account projects. The franchisee should factor in potential repair and replacement expenses when assessing the overall profitability of their franchise. Furthermore, the franchisee should ensure they have adequate resources and capabilities to handle such repairs promptly to avoid intervention by Boulder Designs and subsequent charges.
Prospective franchisees should carefully consider the potential financial impact of repair and replacement obligations. Understanding the frequency and scope of these issues, as well as the associated costs, is crucial for making an informed investment decision. It would be prudent to discuss with existing franchisees their experiences with repairs and replacements to gain a realistic understanding of these responsibilities.