When does Boulder Designs defer the collection of the initial franchise fees in Washington?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Amendment to the Boulder Designs Franchise Agreement dated, 20 between | ||
|---|---|---|
| Boulder Designs Franchising, LLC, ("Franchisor") and | ||
| ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. | ||
| 1. | Section 3.1 of the Franchise Agreement is amended to reflect that payment of Initial Franchise | |
| has commenced doing business. | Fees will be deferred until Franchisor has met its initial obligations to Franchisee, and Franchisee | |
| IN WITNESS WHEREOF, | Franchisee and Franchisor have executed this Amendment to the Franchise | |
| Agreement simultaneously with the execution of the Franchise Agreement. | ||
| FRANCHISOR: | FRANCHISEE: | |
| BOULDER DESIGNS | ||
| FRANCHISING, LLC | ||
| By: | By: | |
| Frank J. "Butch" Mogavero | Name/Title |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the collection of initial franchise fees is deferred until Boulder Designs has met its initial obligations to the franchisee and the franchisee has commenced doing business. This deferral is applicable to all franchisees, not just those in Washington.
This means a new Boulder Designs franchisee won't have to pay the initial franchise fee upfront. Instead, the payment is delayed until Boulder Designs fulfills its initial responsibilities as outlined in the franchise agreement, and the franchisee has started operating their Boulder Designs business.
For a prospective franchisee, this deferral could ease the initial financial burden of starting a franchise. It allows the franchisee to allocate those funds to other startup costs, such as location build-out, equipment purchases, or initial marketing expenses. However, it's important to understand exactly what Boulder Designs' initial obligations are and what constitutes "commencing business" to avoid any misunderstandings about when the fee becomes due. Franchisees should clarify these points with Boulder Designs before signing the agreement.