Is there a requirement that the Boulder Designs Marketing Fee monies be audited?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fee monies are not held in a separate fund and there is no requirement that the Marketing Fee monies be audited. Marketing Fee monies collected during the calendar year that are not spent that specific year, may be used at our discretion during the following year. At the end of each calendar year, you may request an accounting of how the Marketing Fee monies were spent during that specific calendar year.
Marketing Fee is not a trust or escrow, and neither we nor our affiliates have any fiduciary obligation for administering the Marketing Fee or for any other reason
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the marketing fee monies are not required to be audited. These funds are not held in a separate account. Any unspent marketing fees collected during a calendar year may be used at Boulder Designs's discretion during the following year.
At the end of each calendar year, a Boulder Designs franchisee can request an accounting of how the marketing fee monies were spent during that specific calendar year. However, the marketing fee is not considered a trust or escrow, and neither Boulder Designs nor its affiliates have any fiduciary obligation for administering the marketing fee or for any other reason.
Currently, the monthly marketing fee is $0, but Boulder Designs has the right to 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. No marketing fees were collected in the fiscal year ending December 31, 2024.