What is the dependency for the Franchise Fee payment for a Boulder Designs franchise?

According to the 2025 Boulder Designs Franchise Disclosure Document, the payment of the initial franchise fee is deferred until Boulder Designs has met its initial obligations to the franchisee, and the franchisee has commenced business operations. This amendment is agreed upon simultaneously with the execution of the Franchise Agreement.

This arrangement benefits the franchisee by aligning the payment of the initial franchise fee with the commencement of their business operations and the fulfillment of Boulder Designs's initial obligations. This reduces the upfront financial burden on the franchisee and ensures that they only pay the fee once they are ready to start their business and Boulder Designs has provided the necessary support.

This type of deferred payment structure is not standard in the franchise industry, as initial franchise fees are typically due upon signing the franchise agreement. The deferred payment indicates that Boulder Designs is invested in the franchisee's success and is willing to share some of the initial risk. Prospective franchisees should carefully review the specific obligations that Boulder Designs must fulfill before the franchise fee becomes due, as outlined in the Franchise Agreement.