Who retains the Project Deposit for a Boulder Designs National Headstone Program project?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisee shall be solely responsible for collecting any additional information directly from a customer for creation and construction of the product.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor retains 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 a national headstone accounts fee. The Project Deposit is collected by Boulder Designs prior to sending the design proof and customer information to the franchisee for creation and construction. The deposit amount is based on the template and materials selected by the customer, and it can vary based on the total project cost.
Boulder Designs uses this National Headstone Accounts Fee to cover the costs of 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. 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.
This arrangement means that while Boulder Designs franchisees benefit from leads and projects generated by the National Headstone Program, they do not receive the full revenue from these projects. The franchisor retains a portion of the revenue to cover its costs and efforts in managing the program. Prospective franchisees should consider this fee structure when evaluating the potential profitability of participating in the National Headstone Program.