Under what circumstances does Boulder Designs charge an Insufficient Funds Fee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Technology Fee5 | Currently $65 per month, but up to $175 per month. We reserve the right to increase each calendar year by an amount not to exceed 10% of the prior year's fee. | Monthly | For the development and use of online and System technology, including but not limited to internet, website, email, intranet/extranet, and communications technologies, some of which may be implemented in the future. |
| Recommended Local Advertising Spend | 10% of Annual Gross Revenues | As invoiced | We highly recommend you spend a minimum of 10% of annual gross revenues on local advertising. After you have begun operations, by the 31st of January of each year, you must furnish us an accurate accounting of your expenditures on local advertising for the preceding one-year period regardless of the amount spent. |
| Marketing Fee | Currently $0 per month | Monthly | We anticipate charging an amount no greater than $200 per month once implemented. We will provide you with prior notice before any increases in the monthly Marketing Fee are imposed. Once this fee is implemented the fee cap will increase each calendar year by an amount not to exceed 10% of the prior year's cap. |
| Late Fees | $100 per incident | 11th day of each month | Applies to all overdue Royalty Fees, and other amounts due to us. Also applies to any understatement in amounts due revealed by an audit. Late fees will continue to accrue each month when balances due from previous months carry over into the current month. |
| Insufficient Funds Fee | $100 per incident | Upon demand | Applies to all non-approved (ACH Debit) or returned payments made by you that do not fund or clear you bank for any reason w |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, an Insufficient Funds Fee of $100 per incident is charged when a payment made by a franchisee is not approved, or is returned. This applies to payments made via ACH Debit that do not clear the franchisee's bank for any reason. The fee is due upon demand.
This means that if a Boulder Designs franchisee attempts to make a payment to the company via ACH (Automated Clearing House) debit, and the payment is rejected by the bank due to insufficient funds or any other reason, the franchisee will be assessed a $100 fee. This fee is in addition to the original payment amount that was due. The fee is charged for each incident, so multiple failed payment attempts in a month would result in multiple fees.
Franchisees should ensure they have sufficient funds available in their bank account when making payments to Boulder Designs via ACH to avoid incurring this fee. It is a fairly standard practice for franchisors to charge a fee for insufficient funds, as it covers the administrative costs and potential losses associated with processing returned payments.