Under what conditions might Boulder Designs impose a Default Fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee may be subject to a material default if they fail to pay the National Accounts Program fee. This fee is determined by Boulder Designs and is 20% of the Gross Revenue, or another amount designated at the sole discretion of Boulder Designs, derived from National Accounts projects. This fee is for obtaining the project and for administrative costs related to the project.

If a franchisee participates in the National Accounts program and Boulder Designs successfully completes a project in the franchisee's territory, Boulder Designs will disburse the appropriate amount to the franchisee, minus the National Accounts Program fee. The franchisee is obligated to pay this fee for all future revenues received from such account as a repeat customer.

Failure to pay this fee on current or future projects from National Accounts Program clients constitutes a material default of the Franchise Agreement, which could lead to termination of the agreement. This highlights the importance of understanding the terms and conditions of the National Accounts program and ensuring timely payment of the associated fees to avoid potential default and termination of the franchise agreement.