What is the deadline for a Boulder Designs franchisee to pay all sums owing to Boulder Designs or its affiliates after termination or expiration?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
vi. pay all sums owing, after the Effective Date of Termination or Expiration of this Agreement through the date that Franchisee completes all post termination obligations required under this Agreement, to Franchisor, and any Affiliate, which may include, but not be limited to, all damages, liquidated damages, costs and expenses, unpaid Royalty Fees, Marketing Fee, Technology Fee, or any other amounts due to Franchisor or any Affiliate within five (5) days after Termination or expiration of this Agreement or the date on which Franchisee completes all post-termination obligations required under this Agreement, whichever occurs first;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee must pay all outstanding sums to Boulder Designs or its affiliates within a specific timeframe following the termination or expiration of the franchise agreement. This includes any damages, liquidated damages, costs, expenses, unpaid Royalty Fees, Marketing Fees, Technology Fees, or any other amounts due. The deadline for payment is five days after the termination or expiration date of the agreement, or the date on which the franchisee completes all post-termination obligations, whichever comes first.
This requirement ensures that Boulder Designs receives all money owed promptly after a franchise ceases operations. It covers not only standard fees but also any additional costs incurred due to the franchisee's actions or failure to meet obligations. The franchisee is responsible for understanding and fulfilling all post-termination obligations to ensure they meet the payment deadline.
Missing this deadline could result in further legal action or penalties, as the franchise agreement outlines the franchisee's responsibilities upon termination or expiration. Prospective franchisees should carefully review the terms regarding post-termination obligations and payment deadlines to avoid potential disputes or additional costs. Understanding these financial obligations is crucial for planning an exit strategy, whether through the natural expiration of the agreement or an early termination.