Who retains the rights to invoicing, processing, and disbursements related to Boulder Designs National Accounts projects?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor retains all rights to the projects of National Accounts, including invoicing, processing, and making disbursements related to the National Accounts projects. If a Franchisee chooses to participate in the National Accounts program, and if Franchisor successfully completes a project of a National Accounts program in Franchisee's Territory, Franchisor shall make the appropriate disbursement to Franchisee minus 20% of the Gross Revenues or any other amount, or method as designated at the sole discretion of the Franchisor pursuant to the terms of specific National Account derived from the National Accounts project. This National Accounts Program fee as determined by the Franchisor 20% of the Gross Revenue or otherwise from the National Accounts projects shall be retained by Franchisor as a fee for obtaining the project and for administrative costs related to the project. Franchisee shall be obligated to pay this National Accounts Fee to the franchisor for all future revenues received from such account as a repeat customer. Failure to pay this fee on current or future projects from National Accounts Program client shall be a material default of this Agreement and subject to Franchisor's right to terminate the Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor retains all rights to invoicing, processing, and disbursements related to National Accounts projects. This means that while a franchisee may be offered the opportunity to execute and complete a National Accounts project within their territory, Boulder Designs manages the financial aspects of these projects.
If a franchisee participates in a National Accounts project, Boulder Designs will make the appropriate disbursement to the franchisee after successfully completing the project. However, this disbursement is subject to a deduction of 20% of the Gross Revenues, or another amount or method designated by Boulder Designs. This fee is retained by Boulder Designs as compensation for obtaining the project and covering administrative costs.
The franchisee is obligated to pay this National Accounts fee for all future revenues received from the account as a repeat customer. Failure to pay this fee is considered a material default of the Franchise Agreement and may result in termination of the agreement. This arrangement highlights the importance of understanding the terms and conditions associated with National Accounts projects and the financial obligations involved for Boulder Designs franchisees.