For Boulder Designs, how must all sales be processed and reported?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
the Territory unless prior written approval has been provided by Franchisor. Franchisee may only sell items at such trade shows that Franchisor specifies and approves.
Franchisee may accept orders outside of the Territory with certain restrictions. If such product request is received from outside of the Territory, such order retails less than $2,000, and that Territory is not owned/operated by another franchisee, you may retain all gross revenue associated with the sale and production. If the product retails over $2,000 and that Territory is owned/operated by another franchisee, then Franchisee shall pay 100% of the retail price to the Franchisor. The calculation for the boulder weight is as follows: Average Length X Average Height X Average Thickness X .0723 = Weight. Weight X Price per Pound = MSRP of boulder. (A price point of $1.80 per pound is recommended.) Regardless, all sales must be reported to the Franchisor.
As the Franchisor, we do not grant the Franchisee a right of first refusal or any other rights for orders originating in areas that are not in Franchisee's Territory, and while Franchisor does not require it, we encourage you to buy additional Territories adjacent to your Territory if you want to secure those clients.
Whether the Territory is identified as a "Separate Territory" or a "Shared Territory," Franchisor has the right to provide or grant one or more other franchisees the right to provide products and services under the Marks in and outside the Territory. Franchisor also may establish, own or operate, and license others to establish, own or operate, or continue to own or operate, other businesses under other systems using other trademarks inside and outside of the Territory.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, all sales must be reported to the Franchisor. If a Boulder Designs franchisee receives a product request from outside of their territory, and that order retails for less than $2,000 and the territory is not owned/operated by another franchisee, the franchisee may retain all gross revenue associated with the sale and production. However, if the product retails over $2,000 and that territory is owned/operated by another franchisee, then the franchisee must pay 100% of the retail price to Boulder Designs.
In addition to reporting all sales, Boulder Designs franchisees must also submit other reports to the Franchisor. Franchisees must fill out and submit a Quality Control Data Sheet for every job completed. These reports are due annually on July 31 for all projects completed from January 1st through June 30th, and on January 31st for all projects completed between July 1st through December 31st of the prior year.
Furthermore, franchisees must submit a Local Marketing Report annually along with the Gross Revenue Reports. Franchisees are also required to submit copies of all state sales tax returns that are required to be filed with the appropriate governmental agency, as well as any other records that Boulder Designs may reasonably request from time to time or as specified in the Manual. All reports submitted must be certified as true and correct. Boulder Designs may, at its sole discretion, require these reports to be submitted on a monthly basis with a seven-day written notice to the franchisee.