What is the cure period for breaches involving nonpayment of amounts owed to Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a franchisee fails to make a payment of principal, interest, or any installment when due, they have a ten (10) day period to cure this failure. If the franchisee does not rectify the non-payment within this timeframe, Boulder Designs has the right to declare the entire unpaid principal balance and all accrued but unpaid interest on the outstanding debt immediately due and payable without notice or demand. Additionally, Boulder Designs can foreclose on all liens and security interests securing the debt.
This means that a Boulder Designs franchisee must ensure timely payments to avoid potential acceleration of the debt and foreclosure. The relatively short cure period of 10 days underscores the importance of maintaining sufficient cash flow and adhering strictly to the payment schedule outlined in the promissory note and security agreement.
Many franchise agreements include cure periods for various breaches, but the specific length can vary. A ten-day cure period for non-payment is on the shorter side, indicating that Boulder Designs places a high priority on prompt payments. Prospective franchisees should be aware of this strict requirement and factor it into their financial planning and management.