Besides the Transfer Fee, what other payments might a Boulder Designs franchisee owe upon transfer?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If any taxes, fees, or assessments are imposed on Franchisee's payment of any fees (except taxes imposed on Franchisor's net taxable income), Franchisee shall also pay the amount of those taxes, fees, or assessments within 15 days after receipt of Franchisor's written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Boulder Designs Franchise Disclosure Document, in addition to the transfer fee, a franchisee may be responsible for paying taxes, fees, or assessments imposed on the payment of any fees related to the transfer. These payments would cover taxes, fees, or assessments on any fees, excluding taxes on Boulder Designs' net taxable income.
A Boulder Designs franchisee is obligated to pay these taxes, fees, or assessments within 15 days after receiving written notice from Boulder Designs. This means that if any federal, state, or local tax authority levies taxes or fees on the transfer, the franchisee must cover these costs promptly.
This condition ensures that Boulder Designs receives the full amount of its fees without deductions for taxes or other governmental charges, placing the onus on the franchisee to handle these additional costs associated with the transfer. Prospective franchisees should factor in potential tax implications when considering the financial aspects of transferring their franchise.