Under what circumstances is a Boulder Designs franchisee obligated to participate in National Accounts programs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
e: FRANCHISEE: By: Name:
LANDLORD:
Title:
By:
Name:
Boulder Designs® 3 Title:
NATIONAL HEADSTONE PROGRAM
| of, 20 | , by and among Boulder Designs Franchising, LLC ("BOULDER DESIGNS"), |
|---|---|
| a Texas limited liability company, and [FRANCHISEE NAME], an adult individual of state of [STATE] | |
| ("Franchisee") and("Guarantors"). | |
| RECITALS |
WHEREAS, simultaneously with the execution of this Agreement, Franchisor and Franchisee are entering into a franchise agreement (the "Franchise Agreement") for the operation of a Boulder Designs franchise;
WHEREAS, pursuant to the Franchise Agreement, Franchisee has an obligation to participate in any National Accounts program by the Franchisor;
WHEREAS, currently Franchisor has implemented a certain headstone program, upon which franchisor will generate and provide Franchisee with leads for creation of a headstone in Franchisee's Territory (as the term is defined in the Franchise Agreement), in lieu of certain fees charged by the Franchisor;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees have an obligation to participate in any National Accounts program implemented by Boulder Designs. Specifically, franchisees must participate in the National Headstone Program simultaneously with the execution of the franchise agreement, as detailed in Exhibit 11, the National Headstone Program Agreement.
This obligation means that a new Boulder Designs franchisee is not only expected but contractually required to engage in the National Headstone Program from the outset. This program provides franchisees with leads for creating headstones within their designated territory, potentially offering a consistent stream of business. However, participation also entails adhering to the terms and provisions outlined in the National Headstone Program Agreement, which may include specific standards, procedures, and policies set by Boulder Designs.
While franchisees are obligated to participate in the National Headstone Program, Boulder Designs retains the discretion to determine if a franchisee is qualified for each project. Qualification is based on the franchisee's ability to construct various models of headstones, benches, and related accessories offered through the program's website. If Boulder Designs deems a franchisee incapable of servicing a customer or if the service volume exceeds current capacity, they can authorize other franchisees or qualified third parties to provide the services within the franchisee's territory. In such cases, the original franchisee is not entitled to compensation for services provided by others within their territory.
Furthermore, franchisees are responsible for any repair or replacement work for National Headstone Program customers they service, and they must complete such work within thirty days, weather permitting, at their own cost. Failure to meet these obligations can result in Boulder Designs arranging for the repairs or replacements and charging the franchisee for the associated costs. This mandatory participation and the associated responsibilities highlight the importance of understanding the full scope of the National Headstone Program before entering into a franchise agreement with Boulder Designs.