Boulder Designs Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$146,815 - $172,380
Franchise Fee
$55,000
Total US Locations
77
Business Summary
Boulder Designs offers franchises for businesses that create and install custom landscape boulders and business signage. These boulders are made of sand and can be customized in various shapes, sizes, or colors. Boulder Designs serves residential, commercial, and industrial customers, operating under the "BOULDER DESIGNS" service mark. These businesses specialize in this type of boulder-looking signage and landscape features, competing in both the landscape and signage sectors.
Corporate History
Boulder Designs Franchising, LLC was organized as a Texas limited liability company on September 29, 2017. The company operates under its own name and the names "Boulder Designs Franchising" and "Boulder Designs." Frank J. "Butch" Mogavero and his wife, Robin Mogavero, own and operate Boulder Designs. The company acquired most of its assets from Mogavero Investments, LLC as part of a reorganization that occurred in September 2017. Mogavero Investments, LLC, in turn, had acquired all BOULDER DESIGN-related assets from Border Magic, LLC in December 2015. Border Magic, LLC initially offered Boulder Designs franchises from 2002 until December 2015. Mogavero Investments offered Boulder Designs franchises from December 2015 until its reorganization in September 2017.
Financial Overview
Investment Range
$146,815 - $172,380
Franchise Fee (Low)
$55,000
Franchise Fee (High)
$63,000
Royalty %
7%
Equipment Costs (Low)
$58,000
Equipment Costs (High)
$66,250
Working Capital
$6,680
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial statements indicate that Boulder Designs Franchising, LLC is in a member's deficit position, and as of December 31, 2024, its current liabilities exceeded its current assets by $951,771, an increase from $824,556 in 2023. This financial condition has been highlighted as a risk in the FDD, raising questions about Boulder Designs Franchising, LLC's financial ability to provide services and support to franchisees. However, management has taken steps to improve liquidity and financial flexibility, including cost reduction plans and a strategic approach to sales leads. Based on these efforts, management believes the company has the ability to continue as a going concern.
Financing Details
Boulder Designs Franchising, LLC may offer direct financing for a portion of the equipment and supplies package, if a franchisee meets its credit standards. This financing can cover up to 50% of new equipment and supplies, or up to 75% for used or refurbished equipment, for a maximum period of 42 months at an 8.5% annual interest rate. Monthly installments consist of equal payments of principal and accrued interest, with any outstanding balance due in the 42nd installment. Franchisees can prepay the loan without penalty. If payments are not made on time, Boulder Designs can demand immediate payment of the full outstanding balance, repossess equipment, or terminate the franchise agreement. This financing may require a personal guarantee from the franchisee's owners and automatic bank withdrawals. Aside from this specific equipment financing, Boulder Designs does not offer other direct or indirect financing and does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
77
Franchised Units
77
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Boulder Designs Franchising, LLC has been involved in four litigation cases. In Jablonowski, et al. v. Mogavero, et al., a former franchisee sued Boulder Designs and its CEO for deceptive practices, fraud, and breach of fiduciary duty. Boulder Designs counterclaimed for damages, and the case was confidentially settled in August 2021 with Boulder Designs agreeing to pay $120,000. In Boulder Designs Franchising, LLC v. Town & Country Lawn Care and Landscape, Inc., et al., Boulder Designs sued a franchisee for breaching its contract, improperly using confidential information, and unfair competition. This case was confidentially settled in September 2021, with the franchisee compensating Boulder Designs $20,000. In Boulder v Sanford and Red Art, Boulder Designs sued franchisees Mr. and Mrs. Sanford and an affiliate for disclosing trade secrets. A temporary restraining order was issued, and both matters were confidentially settled in December 2021 and March 2022, respectively, involving a termination fee payment from the Sanfords. Most recently, in Border Magic Franchising, LLC and Boulder Designs Franchising LLC v Unlimited Concrete Designs, LLC Patrick Drake, and Angela Miller, filed in October 2022, Boulder Designs sued a franchisee for breach of contract and sought to prevent competitive business. A temporary restraining order was issued, and the claims were dismissed in April 2024 after the matter was resolved.
Bankruptcy History
Boulder Designs Franchising, LLC has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise for one additional 10-year term, Boulder Designs franchisees must provide written notice to Boulder Designs at least nine months before their initial term expires. They are required to schedule and attend a refresher training and certification course. Franchisees must also complete all necessary maintenance, refurbishing, renovating, and remodeling to meet Boulder Designs' then-current brand standards at their own expense within 30 days after the initial term ends. They must be in full compliance with all agreements with Boulder Designs or have cured any defaults, and all financial obligations to Boulder Designs and its affiliates must be satisfied and have been met on time throughout the initial term. Franchisees will need to sign Boulder Designs' then-current Franchise Agreement, which may include different terms and conditions. Furthermore, they must meet current qualifications and training requirements, complete drug testing and a background screening, provide proof of up-to-date certifications, and sign a general release of claims in favor of Boulder Designs and its affiliates.
Training & Support Program
Franchisor Assistance
Before opening, Boulder Designs provides assistance by designating the franchisee's territory and offering an initial training program, which also includes re-boot training. Franchisees receive the Boulder Designs Operations Manuals on loan. After opening, Boulder Designs offers ongoing advice, discusses problems, and provides general guidance through telephone, email, newsletters, and webinars. The franchisor shares changes and additions to the System and periodically provides advertising and promotional materials. Boulder Designs maintains its websites and social media platforms, featuring individual franchisees on dedicated interior pages to direct leads. It also offers administrative bookkeeping and accounting control procedures as needed and may assist or require franchisees to establish pricing guidelines. Additionally, within 90 days after initial training, a corporate team member will visit the franchisee's location for 2 to 4 days to assist with shop setup and initial production demonstrations and quality control procedures.
Initial Training Hours
40
Training Location
Corporate headquarters in Waco, TX
Ongoing Support
After opening, Boulder Designs Franchising, LLC provides ongoing support through general advice and guidance available via telephone, email, newsletters, and webinars. The franchisor communicates improvements and changes to the System to all franchisees and periodically provides advertising and promotional materials. Boulder Designs maintains its websites and social media sites, including individual franchisee pages that generate leads. Administrative bookkeeping and accounting control procedures are offered as needed. Additionally, a corporate team member will assist with shop setup and initial production at the franchisee's location for 2 to 4 days within 90 days of completing initial training. Franchisees or their managers may be required to attend refresher training programs up to twice a year, not exceeding five days annually (excluding annual conventions), with travel and living expenses at the franchisee's cost. An annual National or Regional Convention is mandatory, with an entrance fee for up to two attendees, but excluding lodging and airfare. Additional fees may apply for specific assistance if Boulder Designs interacts directly with a franchisee's clients or vendors.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Boulder Designs territories are defined geographic areas, typically by county, with a minimum population of 225,000. While initially a "Separate Territory" may offer exclusive rights, Boulder Designs can convert it to a "Shared Territory" (allowing multiple franchisees to operate) if the franchisee fails to meet a minimum gross revenue requirement, which is currently not expected to exceed $30,000 annually. A converted Shared Territory is anticipated to have a population greater than 450,000.
Staffing Notes
Boulder Designs Franchising, LLC requires the franchised business to always be under the direct supervision of an Internal Manager. This manager must devote their full-time, best efforts to operating the business and must satisfactorily complete the franchisor's initial training program. While Boulder Designs recommends that an owner with equity also personally participate and supervise operations, it is not a mandatory requirement. Franchisees are responsible for training their own employees and management personnel. The franchise provides guidance on various human resources topics, including EEOC guidelines, harassment laws, immigration compliance, wage and labor laws, employee profiles, job descriptions, recruitment, interviewing processes, personnel policy development, employee orientation, confidentiality, training, compensation, time reporting, uniform/dress code, performance evaluations, progressive discipline, and termination. Franchisees are expected to maintain a competent and conscientious staff, employing the minimum number of individuals necessary to meet anticipated business volume and system goals, and ensuring all staff comply with appearance and dress code requirements. Boulder Designs does not prohibit soliciting or hiring employees from other Boulder Designs franchisees; however, if a franchisee hires an employee who attended franchisor training within the last 12 months, the hiring franchisee must reimburse the former franchisee for the training fee and associated costs.