What financial obligations does a Boulder Designs franchisee have regarding the debts, taxes, and assessments against the Franchised Business?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Manual.
Franchisee must purchase, install, update, upgrade and use computer, credit card processing systems, surveillance systems, point-of-sale system, software and phone systems consisting of hardware and software in accordance with Franchisor's specifications listed in the Manual(s).
Before opening the Franchised Business and commencing business, Franchisee must:
- ii. furnish Franchisor with copies of all insurance policies required by this Agreement and by the lease (if the Approved Location is leased), or such other evidence of insurance coverage and payment of premiums as Franchisor may request;
- v. obtain all necessary permits and licenses;
- vi. purchase all Opening Project inventory not purchased pursuant to Section 5.4, as stated in Section 8.2;
- viii. pay in full all amounts due to Franchisor, or execute the Promissory Note and Security Agreement (attached hereto as Exhibit 9, if applicable) for any amounts due Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Boulder Designs franchisees have several financial obligations related to the operation of their franchised business. These obligations include the payment of state sales taxes, as franchisees are required to submit copies of all state sales tax returns to Boulder Designs. These returns must be filed with the appropriate governmental agency. Additionally, Boulder Designs retains the right to request other records from the franchisee as deemed reasonably necessary or as specified in the Manual.
Furthermore, franchisees are responsible for purchasing, installing, and maintaining the necessary computer, credit card processing, surveillance, point-of-sale (POS) systems, software, and phone systems. These systems must adhere to Boulder Designs' specifications as outlined in the Manual(s). The computer and/or POS system used by the franchisee must be dedicated solely to the Boulder Designs business and not used for any other purpose.
Prior to opening their Boulder Designs business, franchisees must also fulfill several financial prerequisites. These include furnishing Boulder Designs with copies of all required insurance policies and evidence of premium payments, obtaining all necessary permits and licenses, and purchasing all opening project inventory. Franchisees must also pay in full all amounts due to Boulder Designs or execute a Promissory Note and Security Agreement for any outstanding amounts. These financial obligations ensure that the franchisee is compliant with legal and contractual requirements and is adequately equipped to operate the business according to Boulder Designs' standards.