What was the total revenue from franchise fees and royalties for Boulder Designs in 2023?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $ 97,522 | 151 |
| Franchise fees receivable, net | 397,028 | 553,156 |
| Inventory | 143,358 | 133,159 |
| Deferred costs | 67,562 | 87,322 |
| Total current assets | 705,470 | 773,788 |
| Equipment | 183,787 | 174,927 |
| Less: accumulated depreciation | 125,062 | (99,331) |
| Equipment, net | 58,725 | 75,596 |
| Other assets: | ||
| Deferred costs, excluding current portion | 158,796 | 214,248 |
| Other receivables | 4,500 | 1,568 |
| Acquired franchise agreements, net | 563,824 | 576,824 |
| Total assets | $1,491,315 | 1,642,024 |
| Liabilities and Member's Deficit | ||
| Current liabilities: | ||
| Notes payable | $ 248,000 | 255,000 |
| Current installments of long-term debt | 13,971 | 20,793 |
| Accounts payable | 191,886 | 291,188 |
| Accrued expenses | 293,743 | 188,330 |
| Deferred revenue, current | 909,641 | 843,033 |
| Total current liabilities | 1,657,241 | 1,598,344 |
| Long-term debt, excluding current portion | 571,730 | 528,240 |
| Deferred revenue, net of current portion | 3,111, |
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the total revenue from franchise fees and royalties in 2023 was $420,131. This figure represents the income Boulder Designs Franchising, LLC received from its franchisees through initial franchise fees and ongoing royalty payments. These fees are crucial for the franchisor as they support the services provided to franchisees and the overall operation of the franchise system.
For a prospective Boulder Designs franchisee, understanding this revenue figure provides insight into the financial health and revenue streams of the franchisor. It demonstrates how the company generates income and can be an indicator of the franchisor's reliance on franchisee fees versus other sources of revenue, such as equipment or supply sales. A healthy revenue stream from royalties often suggests that existing franchisees are performing well, which can be a positive sign for potential investors.
In addition to franchise fees and royalties, Boulder Designs also generates revenue from equipment sales and supplies. In 2023, equipment sales amounted to $763,122, while supplies and other sources contributed $406,107. These additional revenue streams can impact the overall financial stability of the franchisor and potentially influence the level of support and services they can provide to franchisees. Reviewing these figures in comparison to previous years can reveal trends and growth patterns within the Boulder Designs franchise system.