What condition must be met for Boulder Designs to collect the initial franchise fee?

According to the 2025 Boulder Designs Franchise Disclosure Document, the payment of the initial franchise fee is deferred until Boulder Designs has fulfilled its initial obligations to the franchisee and the franchisee has commenced doing business. This amendment is entered into simultaneously with the execution of the Franchise Agreement. This means that Boulder Designs cannot collect the initial franchise fee until they have met their initial obligations to the franchisee, and the franchisee has started operating their Boulder Designs business.

This arrangement is beneficial for the franchisee as it aligns the franchisor's compensation with their performance and support in getting the franchisee's business up and running. It reduces the upfront financial burden on the franchisee and ensures that Boulder Designs is motivated to provide the necessary assistance and resources to help the franchisee launch their business successfully.

Prospective franchisees should confirm what constitutes Boulder Designs's "initial obligations" to ensure clarity and avoid potential disputes later on. It would be prudent to have a detailed list of these obligations in writing as part of the franchise agreement to ensure both parties are aligned on expectations.