Does this agreement change when the Boulder Designs franchisee is required to pay the initial fee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall make its initial training programs and re-boot training available to the Franchisee and its Internal Manager.
Upon execution of this Agreement, Franchisee shall pay Franchisor an Initial Training Fee in the amount specified in Exhibit 1, Key Terms Page. The initial training program consists of approximately five business day(s) of classroom training and on-the-job initial training program for the Franchisee and its initial manager. Instruction pertains to all material aspects of the operation of a BOULDER DESIGNS Business, including such topics as: BOULDER DESIGNS mission and principles; establishment of your business structure; legal filings; business licenses; banking and checking accounts; insurance; accounting and legal support; computer system and software installation; set up accounting systems; market research; marketing plan; optional establishment of office lease; employment suggestions; incoming call scripts; office administration; administrative management training; trademark usage guidelines; maintenance of quality standards; customer service techniques; record keeping and reporting procedures; other operational issues; resale, transfer, renewals and assignment training; vendor interaction and ordering, and on-the-job training. Franchisor shall conduct the initial training program either in person at its headquarters or at another designated location or locations, as Franchisor requires. Initial Training amount is fully earned and nonrefundable upon completion of the Franchisee's training. If Franchisee does not successfully complete the initial training, Franchisor reserves the right to deduct any amount from Franchisee's Initial Training Fee to cover Franchisor's expense and the cost of providing the initial training course in addition to Franchisee paying Franchisor the On-Site Training Cancellation Fee and the other rights of Franchisor pursuant to this agreement.
Initial Training Fee is allocated to Franchisor's cost and expense in providing such training to the Franchisee and its initial manager; however, all expenses incurred by Franchisee and its employees in attending such program including, but not limited to, travel costs, room and board expenses and employees' salaries, shall be the sole responsibility of Franchisee. Additional trainees will be at the then-current published rates. Any additional individuals or new internal managers are subject to fees under Section 8.4 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisee is required to pay an Initial Training Fee upon execution of the Franchise Agreement. Section 8.1 states that the franchisee must pay the Initial Training Fee, the amount of which is specified in Exhibit 1, upon the execution of the agreement. The initial training program consists of approximately five business days of classroom and on-the-job training for the franchisee and their initial manager.
The training covers all material aspects of operating a Boulder Designs business, including the company's mission, business structure, legal filings, licenses, banking, insurance, accounting, computer systems, marketing, office setup, administration, trademark usage, quality standards, customer service, record keeping, and vendor interaction. The initial training is conducted at Boulder Designs' headquarters or another designated location. Once the franchisee completes the training, the Initial Training Fee is considered fully earned and nonrefundable by Boulder Designs.
However, if the franchisee does not successfully complete the initial training, Boulder Designs reserves the right to deduct expenses from the Initial Training Fee to cover their costs of providing the training course. In addition, the franchisee may be required to pay an On-Site Training Cancellation Fee, as well as be subject to other rights of Boulder Designs as outlined in the agreement. The franchisee is responsible for all expenses incurred while attending the training program, including travel, room and board, and employee salaries. Additional trainees are subject to then-current published rates, and new internal managers are subject to fees under Section 8.4 of the Franchise Agreement.