Under what condition can Boulder Designs require reports to be submitted on a monthly basis?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall fill out and submit a Quality Control Data Sheet for every job completed. These reports are due annually July 31 for all projects January 1st through June 30th and the report is due annually January 31st for all projects done between July 1st through December 31st of the prior year.
Franchisee shall submit the Local Marketing Report annually along with the Gross Revenue Reports as stated in Section 12.3. Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Manual. Franchisor shall have the right to release financial and operational information relating to the Franchised Business to Franchisor's prospective franchisees, Franchisor's lenders or prospective lenders, as required with respect to offering Franchisor's or its Affiliate's securities to the public or as required to sell, merge or in any other manner transfer Franchisor's assets or any type of certificates representing an ownership interest in Franchisor. Franchisee shall certify as true and correct all reports to be submitted pursuant to this Agreement. Franchisor may in its sole discretion require the reports pursuant to this Section 12.5 are submitted on a monthly basis upon written seven-day notice to the Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor has the authority to request reports on a monthly basis from franchisees under specific conditions. Boulder Designs may exercise this right at its discretion, provided they give the franchisee a seven-day written notice. These reports, as specified in Section 12.5, encompass Quality Control Data Sheets, Local Marketing Reports, Gross Revenue Reports, and copies of state sales tax returns.
This provision grants Boulder Designs the flexibility to monitor franchisee performance and compliance more closely. It allows them to respond quickly to potential issues or changes in market conditions. For a prospective franchisee, this means being prepared to provide these reports more frequently if requested. Failure to comply with such requests could potentially lead to penalties or other consequences as outlined in the franchise agreement.
While the standard reporting schedule is annual, the ability for Boulder Designs to switch to monthly reporting provides them with greater oversight. This ensures franchisees adhere to the brand's standards and operational procedures. Prospective franchisees should consider this potential requirement when evaluating the administrative and operational demands of the franchise. They should also factor in the resources needed to compile and submit these reports on a more frequent basis if required by Boulder Designs.