What rights does Boulder Designs have regarding projects obtained through the National Headstone Program?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
pon which franchisor will generate and provide Franchisee with leads for creation of a headstone in Franchisee's Territory (as the term is defined in the Franchise Agreement), in lieu of certain fees charged by the Franchisor; and
WHEREAS, the Franchisor desires to grant you the right to participate, and you desire to patriciate in the national headstone program, pursuant to the terms and conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration for the mutual promises contained in this Agreement and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties amend the Agreement and agree as follows:
-
- Franchisee hereby acknowledges and agrees that Franchisor may negotiate and implement a national account program(s) to serve clients across territories and from multiple franchisees and the Franchisee further acknowledges that the Franchisor has incurred significant costs and expenses in development of national website and marketing services related to engraved rocks and custom boulders for a cemetery headstone ("National Headstone Program").
-
- Franchisor and Franchisee hereby agree to the following terms as they relate to the National Headstone Program:
- a. Territory. Franchisee hereby further acknowledges and understands that the National Headstone Program implemented by the Franchisor, provides Franchisor the right to solicit and obtain certain projects that may be located anywhere, including Franchisee's granted Territory.
- b. National Headstone Program. Franchisee further acknowledges and agrees that pursuant to the Franchise Agreement, if Franchisor obtains a National Headstone Program project in the Territory, Franchisor may, but is not obligated to, offer the project to Franchisee for execution and completion. If Franchisor makes such an offer, Franchisee agrees to service the National Headstone Program customer under the same terms, pricing, and provisions negotiated for the National Headstone Program, and the Franchisee shall not receive any additional compensation for participation in the National Headstone Program.
- Boulder Designs® 1 c. Franchisee's Obligations and Procedures. General procedure for procurement and servicing the National Headstone Program customer is subject to this Agreement and other terms and conditions of the Franchise Agreement, which Franchisor may change at their sole discretion upon 15 days' notice to the Franchisee. Prospective customer has an option to design their own headstone using the National
Franchise Agreement | 2025
Headstone Program webpage and submit it to obtain an estimate on cost or in the alternative they may choose to e-mail the Franchisor's design department for direct questions regarding design and pricing. Once the customer is approved the Franchisor may collect the Project Deposit (as defined below) and provide design proof if available and customer information to the Franchisee for construction. Franchisee shall be solely responsible for any communication with the customer to complete the project per design and/or any specifications provided by the customers. Franchisee shall send picture of completed project to the customer for review and approval. Franchisee further acknowledges at their sole cost and expense the Franchisee shall deliver and install the product at the customer requested location, provided that the Franchisee may charge reasonable delivery and installation of the product to the customer per customer's request. Franchisor may at their sole discretion and in no obligation to do so, may reach out to the customer to assure satisfaction and provide a lifetime warranty.
- d. Fees. As of the Effective Date of this Agreement, Franchisor will collect a deposit due per project, which is based on template and materials selected by the customer which could vary based on the total project cost, prior to sending the design proof if one available and customer information to the Franchisee for creation and construction ("Project Deposit"). The Franchisor may provide the Franchisee with design proof and customer information, and the Franchisee shall be entitled to the remaining balance for the project which shall be gross revenue per project minus the Project Deposit paid to the Franchisor. 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. 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the company retains significant rights regarding the National Headstone Program. Boulder Designs has the right to solicit and obtain projects anywhere, including within a franchisee's territory. While Boulder Designs may offer a project to a franchisee for execution, they are not obligated to do so. If a franchisee is offered a project, they must service the customer under the terms, pricing, and provisions negotiated for the National Headstone Program, without additional compensation. Boulder Designs also reserves the exclusive right to negotiate directly with national clients for the provision of goods and services by all franchisees under the National Headstone Program and can change the terms of the program with written notice.
Boulder Designs retains control over invoicing, processing, and disbursements related to National Accounts projects. If a franchisee participates in the National Accounts program and Boulder Designs successfully completes a project in the franchisee's territory, Boulder Designs will disburse the appropriate amount to the franchisee, minus 20% of the gross revenues or another amount determined at Boulder Designs's discretion. This fee is retained by Boulder Designs for obtaining the project and for administrative costs. The franchisee is obligated to pay this fee for all future revenues received from the account as a repeat customer, and failure to do so constitutes a material default of the agreement.
Furthermore, Boulder Designs has the right to assign a project to another franchisee or its affiliate if the original franchisee refuses or is unable to perform the project. If a franchisee accepts a project but cannot complete it, they must reimburse Boulder Designs for any costs already spent on the project and any expenses incurred in reassigning it. Boulder Designs also determines, in its sole discretion, if a franchisee is qualified for each project based on their ability to construct various headstone models and related accessories. If the franchisee is not capable of servicing the customer or if the service volume exceeds demand, Boulder Designs can authorize other franchisees or qualified third parties to provide the services within the franchisee's territory, without the franchisee being compensated.