What is the amount of the first payment due for the Boulder Designs promissory note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| , 20 | |
|---|---|
| FOR VALUE RECEIVED, | , whose address |
| is ("Debtor", whether one or more) jointly and severally promises | |
| to pay to the order of Boulder Designs Franchising, LLC, a Texas limited liability company, or its affiliates, | |
| successors, | |
| and assigns ("Franchisor" or "PAYEE") at its offices at 2324 N. Robinson Drive, Waco, Texas | |
| 76706, or such other location as PAYEE may hereafter | designate, the principal sum of |
| and/100 Dollars ($), together with interest on the unpaid | |
| principal balance outstanding from time to time hereon at a rate equal to 8.5% per annum | or the Maximum |
| Rate, whichever is less, under the terms and conditions of this promissory note and security agreement | |
| ("Note"). This Note is due and payable in 42 | monthly installments of principal and interest. The first of |
| 42 | |
| payments shall be in an amount of $ commencing, 20, and on the | |
| first day of each and every calendar month thereafter, and the 42nd | and final installment shall be due on |
| , 20, on which date the entire unpaid principal balance and all accrued and unpaid | |
| interest is due and payable in full. Each payment will first be applied to accrued and unpaid interest and | |
| then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a | |
| late fee of Fifty Dollars ($50). | |
| "Maximum Rate" means the maximum lawful rate of interest permitted by applicable usury laws | |
| now or hereafter enacted which interest rate shall change when and as said laws change, to the extent | |
| permitted by law, effective on the day such change in said laws becomes effective. | |
| If Franchisor terminates the Franchise Agreement dated as of the date hereof between Franchisor | |
| and (the "Franchise Agreement") for any of the reasons stated in Section 16.2 | |
| of the Franchise Agreement or, if Debtor fails to make a payment of principal, interest or any installment | |
| thereof when due, and such failure continues for a period of ten (10) days, Franchisor may declare the entire | |
| unpaid principal balance of, and all accrued but unpaid interest on, the indebtedness evidenced by this Note | |
| immediately due and payable without notice or demand, foreclose all liens and security interests securing |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the promissory note outlines the repayment terms for funds borrowed from Boulder Designs Franchising, LLC. The note is structured to be repaid over 42 monthly installments, with the initial payment amount to be determined and due starting in 20. The specific dollar amount for this first payment is not provided in this excerpt, but the agreement does state that payments will be applied first to any accrued interest, and then to the principal balance. A late fee of $50 will be applied to any payment received more than 10 days after its due date. The interest rate on the unpaid principal balance is set at 8.5% per annum or the Maximum Rate, whichever is less.
If a franchisee fails to make a payment of principal or interest when due, and this failure continues for 10 days, Boulder Designs has the right to declare the entire unpaid balance immediately due and payable. This clause protects the franchisor's investment and ensures timely repayment of the borrowed funds. The promissory note is secured by a personal guarantee from the debtor's principal, ensuring that there is an additional layer of security for the repayment of the debt.
Prospective franchisees should carefully review the promissory note and security agreement to fully understand their obligations and the potential consequences of failing to meet those obligations. It is crucial to clarify the exact amount of the first payment and the corresponding due date with Boulder Designs before signing the agreement. Understanding these terms is essential for managing the financial aspects of the franchise and maintaining a positive relationship with the franchisor.