What is the dollar amount of the first of 42 payments for the Boulder Designs Promissory Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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 |
Chief Executive Officer
EXHIBIT 9 TO THE FRANCHISE AGREEMENT
PROMISSORY NOTE
PROMISSORY NOTE AND SECURITY AGREEMENT
| $ | , 20 |
|---|---|
| FOR VALUE RECEIVED, | , whose address |
| is ("Debtor", whether one or more) jointly and severally promises | |
| to pay to the order of Boulder Designs Franchising, LLC, a Texas limited liability company, or its affiliates, | |
| successors, | |
| and assigns ("Franchisor" or "PAYEE") at its offices at 2324 N. Robinson Drive, Waco, Texas | |
| 76706, or such other location as PAYEE may hereafter | designate, the principal sum of |
| and/100 Dollars ($), together with interest on the unpaid | |
| principal balance outstanding from time to time hereon at a rate equal to 8.5% per annum | or the Maximum |
| Rate, whichever is less, under the terms and conditions of this promissory note and security agreement | |
| ("Note"). This Note is due and payable in 42 | monthly installments of principal and interest. The first of |
| 42 | |
| payments shall be in an amount of $ commencing, 20, and on the | |
| first day of each and every calendar month thereafter, and the 42nd | and final installment shall be due on |
| , 20, on which date the entire unpaid principal balance and all accrued and unpaid | |
| interest is due and payable in full. Each payment will first be applied to accrued and unpaid interest and | |
| then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a | |
| late fee of Fifty Dollars ($50). | |
| "Maximum Rate" means the maximum lawful rate of interest permitted by applicable usury laws | |
| now or hereafter enacted which interest rate shall change when and as said laws change, to the extent | |
| permitted by law, effective on the day such change in said laws becomes effective. |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the promissory note outlines the repayment terms for funds borrowed. The note is payable in 42 monthly installments, which include both principal and interest. The interest rate is set at 8.5% per annum, or the Maximum Rate, whichever is less. The initial payment amount is specified as a dollar amount, but the actual figure is not provided in this excerpt. The first payment is due commencing in a specified month and year, with subsequent payments due on the first day of each following month. The 42nd and final installment is due on a specific date, at which point the entire unpaid principal balance and any accrued interest are due. Payments are first applied to cover accrued interest, with the remaining amount reducing the principal. A late fee of $50 is applied to any payment received more than ten days after its due date.
If Boulder Designs terminates the Franchise Agreement for reasons stated in Section 16.2 of the Franchise Agreement, or if the franchisee fails to make a payment of principal, interest, or any installment when due, and this failure continues for ten days, Boulder Designs can declare the entire unpaid principal balance and all accrued interest immediately due and payable without notice. They can also foreclose on any liens and security interests securing the debt.
Prospective franchisees should carefully review the promissory note and security agreement to understand their obligations and the potential consequences of default. It is important to clarify the exact dollar amount of the first payment, the specific dates for all payments, and the conditions under which Boulder Designs can accelerate the debt or foreclose on collateral. Understanding these terms is crucial for managing the financial aspects of the franchise and avoiding potential disputes with the franchisor.