What are the specific requirements for a Boulder Designs franchisee to participate in local community events and promote the brand (Item 9), and how do these requirements relate to the franchisor's marketing strategy?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
y requirements or issuing credit card companies. Franchisee shall at all times comply with all payment card industry data security standards laws and regulations including any laws applicable to abandoned property and escheat and shall hold Franchisor harmless from any and all claims and liabilities.
Section 13.11 Best Efforts
Franchisee shall use its best efforts to promote and increase the sales and recognition of services offered through the Franchised Business. Franchisee shall require all of Franchisee's independent contractors, employees, Internal Managers, officers, agents and representatives to use best efforts to enhance and
improve the System and the sales of all services and products provided as part of the System. Best efforts are defined as set forth in Section 2.6 hereof. Franchisor will have the sole discretion to issue a Notice of Termination with 60 days right to cure or in the alternative, Franchisee may lose territorial exclusivity.
Franchisee is encouraged to submit suggestions, in writing, to Franchisor for improving elements of the system, including products, services, equipment, service format, advertising and any other relevant matters, that Franchisor considers adopting or modifying standards, specifications and procedures for the system. Franchisee agrees that any suggestions made are Franchisor's exclusive property. Franchisor has no obligation to use any suggestions. If any suggestion is implemented by Franchisor, said suggestion will become part of the system and no compensation is owed to Franchisee. Franchisee may not use any suggestions inconsistent with Franchisee's obligations under this agreement without our written consent.
Franchisee shall operate the Franchised Business so that it is clearly identified and advertised as a "Boulder Designs" business. Franchisee shall use the trademark "BOULDER DESIGNS" and the other Marks which now or hereafter may form a part of the System, on all signs, paper supplies, business cards, uniforms, advertising materials, technology platforms, signs and other articles in the identical combination and manner as the Franchisor may prescribe in writing and the Franchisee shall supply to the Franchisorsamples or photographs of the same upon Franchisor's request. Franchisee shall comply with all trademark, trade name, service mark and copyright notice marking requirements and Franchisee shall supply to the Franchisor samples or photographs of the same upon our request.
Section 13.12 Reserved
Section 13.13 Former Franchisees
Franchisee acknowledges that Former Franchisees are in a position to compete unfairly with Franchisor, Franchisee and/or other members of the System, and cause great injury to the reputation of the System and/or the Proprietary Marks. Franchisee therefore agrees as follows:
- i. Franchisee will not sell, loan, give or otherwise transfer or deliver to any Former Franchisee, or allow any Former Franchisee to copy or otherwise obtain, any confidential business information about the System; any advertising or promotional materials produced by Franchisor or which bear any of the Proprietary Marks; any other of our materials or publications, including, without limitation, the Manual; any directory or roster of franchisees or Approved Suppliers, any other customer lists or mailing lists pertaining in any way to the System; or any other information about the Boulder Designs Business or the System which is not available to the public;
- ii. Franchisee will not refer prospective Customers to any Former Franchisee;
- iii.
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees are expected to use their best efforts to promote and increase sales and recognition of the services offered through their franchised business. This includes ensuring that all independent contractors, employees, internal managers, officers, agents, and representatives also use their best efforts to enhance and improve the Boulder Designs system and sales. The FDD defines 'best efforts' in Section 2.6. Franchisees must operate their business so it is clearly identified and advertised as a Boulder Designs business, using the trademark and other marks as prescribed by Boulder Designs on all signs, supplies, and advertising materials. Franchisees must also comply with all trademark, trade name, service mark, and copyright notice marking requirements.
Boulder Designs highly recommends franchisees spend at least 10% of their annual gross revenue on local advertising that conforms to the franchisor's standards. Franchisees must provide an accurate accounting of these local advertising expenditures to Boulder Designs by January 31st of each year, regardless of the amount spent. All advertising and promotions must be approved in writing by Boulder Designs in advance, with a 30-day review period. Failure to obtain approval within this timeframe results in automatic denial.
Boulder Designs also has the right to operate a marketing program for the general benefit of the Boulder Designs system. The monthly marketing fee is currently $0, but Boulder Designs has the right to implement and increase it up to $200 per month with 30 days' prior notice. Once implemented, the marketing fee cap can increase each calendar year by an amount not to exceed 10% of the prior year's cap. These marketing fees can be used for various purposes, including creative development, advertising, website maintenance, and to reimburse Boulder Designs's personnel and administrative costs associated with marketing and promotion. The franchisee is also expected to present customer evaluation forms and participate in marketing surveys performed by or for Boulder Designs, as well as maintain and supply customer lists to Boulder Designs upon request.
These requirements ensure brand consistency and quality control across all franchise locations, which is a common practice in franchising. By mandating the use of approved marketing materials and requiring a certain level of local advertising spend, Boulder Designs aims to maintain a consistent brand image and drive sales across the entire system. The marketing fee, when implemented, allows Boulder Designs to coordinate larger-scale marketing efforts that benefit all franchisees. The franchisee's active participation in local marketing and adherence to brand standards are crucial for the overall success and reputation of the Boulder Designs brand.