Which section in the Boulder Designs Franchise Agreement outlines the franchisee's obligations for ongoing product/service purchases?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Franchisor its then-current technology fee ("Technology Fee") on the first of every month, which is currently defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. Franchisor has the right to increase this fee at Franchisor's discretion upon providing Franchisee 30 days' notice of their intent to increase to the current monthly Technology Fee.
The Technology Fee will cover Franchisor's cost of providing BOULDER DESIGN franchisees technology and other technical resources, including, without limitation, certain internet resources, website, email, intranet address, software, and other technology to facilitate Franchisee's operation of the Franchised Business. The parties acknowledge and agree that the technological environment is rapidly changing and that it is difficult to anticipate the cost of developing, acquiring, implementing, and licensing Internet and communications technologies that may benefit franchisees of the System. Each calendar year, the Technology Fee shall increase automatically by an amount not to exceed 10% of the prior year's Technology Fee. Franchisee agrees to pay the Technology Fee according to the terms prescribed by the Franchisor.
In addition, Franchisor requires Franchisee to purchase, through an approved supplier, the approved point of sale system ("POS"). Franchisee will be responsible for any ongoing upgrades or updates to the POS, ongoing maintenance packages, and computer and software packages after installation. The computer system and/or POS for your Franchised Business will be dedicated to the operation of the Boulder Designs business and used for no other purpose.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Section 3.5, titled "Technology Fee," outlines some of the franchisee's obligations for ongoing product/service purchases. Specifically, it states that franchisees must purchase an approved point-of-sale (POS) system through an approved supplier.
Beyond the initial purchase, the franchisee is also responsible for any ongoing costs associated with the POS system. This includes upgrades, updates, maintenance packages, and any necessary computer and software packages after the initial installation. The agreement stipulates that the computer system and/or POS must be dedicated solely to the operation of the Boulder Designs business.
This section highlights the importance of technology in operating a Boulder Designs franchise and the ongoing financial commitment franchisees must make to maintain and update these systems. Prospective franchisees should factor in these recurring technology expenses when evaluating the overall cost of investment.