Under what circumstances can Boulder Designs increase the minimum liability protection requirement annually?

According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs has the right to increase the minimum liability protection requirement annually. This increase must be reasonable and can be implemented to reflect inflation, changes in liability standards, future damage awards, or other relevant changes in circumstances.

This provision means that as a Boulder Designs franchisee, you could see your insurance costs increase over time due to factors outside of your direct control. These factors are tied to broader economic and legal trends. It is a fairly standard practice in franchising to allow for adjustments to insurance requirements to keep pace with these changes.

It is important to factor in potential future increases in insurance costs when evaluating the overall financial viability of a Boulder Designs franchise. While the initial insurance requirements are specified, the possibility of annual increases should be considered in your long-term financial planning. Prospective franchisees should discuss with Boulder Designs what typical increases have looked like in past years to get a sense of potential future costs.