When is the Boulder Designs Royalty Fee due?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee2,4 | The greater of: (i) The percentage of Collected Gross Revenue in accordance with the following schedule: 7% of Gross Revenue Or (ii) The minimum monthly Royalty Fee in accordance with the following schedule: Year 1 - $750/month Year 2 - $950/ month Year 3 thru remainder of term $1,500/month | First day of each month | |
| Late Fees | $100 per incident | 11th day of each month | Applies to all overdue Royalty Fees, and other amounts due to us. Also applies to any understatement in amounts due revealed by an audit. Late fees will continue to accrue each month when balances due from previous months carry over into the current month. |
Note 1. The fees are uniformly imposed and nonrefundable unless noted otherwise below or in the Remarks column. Royalty Fees, Audit Expenses, Transfer Fees, plus any other amounts you owe us will be deducted from payments that your customers submit to you under the Order Processing System, or as a separate ACH withdrawal if warranted.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Royalty Fee is due on the first day of each month. The royalty fee is the greater of either 7% of gross revenue or a minimum monthly fee. The minimum monthly royalty fee varies depending on the year of the franchise agreement. In the first year, it is $750 per month, in the second year it is $950 per month, and from the third year through the remainder of the term, it is $1,500 per month.
It is important to note that Boulder Designs will deduct Royalty Fees, Audit Expenses, Transfer Fees, and any other amounts owed to them from payments that customers submit through the Order Processing System. If warranted, these fees may also be collected via a separate ACH withdrawal.
Additionally, if a franchisee is late on any payments, including Royalty Fees, they will be charged a late fee of $100 per incident, which is due on the 11th day of each month. This late fee will continue to accrue each month if balances from previous months carry over into the current month.