What articles in the Boulder Designs Franchise Agreement detail the franchisee's fee obligations?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company reserves the right to reduce the scope of the obligations under the covenants contained in Articles 7 and 17 of the Franchise Agreement unilaterally and without the consent of any other person or entities effective upon giving notice thereof.
I will comply with all of the provisions contained in Article 7 of the Franchise Agreement concerning the use of the Confidential Information.
I will comply with all of the provisions contained in Article 18 of the Franchise Agreement concerning the assignment of my interests in the Franchisee.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
Based on the 2025 Boulder Designs Franchise Disclosure Document, Article 7 and Article 17 of the Franchise Agreement contain obligations that the company reserves the right to reduce unilaterally. Additionally, the Guaranty and Assumption of Obligations mentions compliance with Article 7 and Article 18 of the Franchise Agreement.
Specifically, Article 7 concerns the use of confidential information, which could indirectly relate to fees if the franchisee were to misuse this information, potentially leading to penalties or legal costs. Article 17 is not detailed in the provided excerpts. Article 18 concerns the assignment of interests in the Franchisee.
To fully understand all fee obligations, a prospective Boulder Designs franchisee should carefully review the complete Franchise Agreement, paying close attention to Articles 7, 17, and 18. They should also ask Boulder Designs for clarification on what specific fees are covered in these articles and under what circumstances these fees may be reduced or adjusted. This will help the franchisee understand their financial obligations and potential liabilities under the franchise agreement.