Under what conditions must a Boulder Designs franchisee participate in a purchasing program?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate purchase arrangements with primary suppliers for the benefit of franchisees, and receive rebates or other material benefits on account of franchisee purchases or leases. If we negotiate a purchase agreement for the region where your Boulder Designs Business is located, you must participate in the purchasing program.
We currently have a purchasing agreement with a third-party supplier for certain supplies, including paint and paint supplies. We receive a rebate between 2% and 4% on these supplies purchased by franchisees from this supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee must participate in a purchasing program if Boulder Designs negotiates a purchase agreement for the region where the franchisee's Boulder Designs Business is located.
Boulder Designs may negotiate purchase arrangements with primary suppliers for the benefit of franchisees and receive rebates or other material benefits on account of franchisee purchases or leases. Currently, Boulder Designs has a purchasing agreement with a third-party supplier for certain supplies, including paint and paint supplies, and receives a rebate between 2% and 4% on these supplies purchased by franchisees from this supplier.
This means that if Boulder Designs establishes a purchasing agreement with a supplier in a franchisee's specific region, the franchisee is obligated to participate in that program. This could impact the franchisee's costs and potentially limit their choice of suppliers, but it also presents an opportunity to benefit from negotiated rates and rebates secured by Boulder Designs.