What is the first day of each month that payments are due for the Boulder Designs Promissory Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the Promissory Note outlines the payment schedule for franchisees who finance a portion of their initial investment. The note is payable in 42 monthly installments, with payments due on the first day of each calendar month. The initial payment amount will be specified in the agreement, and a late fee of $50 will be applied to any payment received more than 10 days after its due date.
If a franchisee fails to make a payment when due, and the failure continues for 10 days, Boulder Designs has the right to declare the entire unpaid balance immediately due and payable. This could lead to foreclosure on any liens or security interests securing the note. The interest rate on the unpaid principal balance is 8.5% per annum or the Maximum Rate, whichever is less.
In addition to the Promissory Note, franchisees are also required to pay royalty fees and technology fees. Royalty fees are due on the first business day of each calendar month, while technology fees are due on the first of every month. Understanding the payment obligations and due dates outlined in the Promissory Note is crucial for prospective Boulder Designs franchisees to manage their finances and avoid penalties or default.