When will the Franchise Fee payment be deferred until for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | | |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the payment of the initial franchise fee will be deferred until Boulder Designs has met its initial obligations to the franchisee, and the franchisee has commenced doing business. This amendment is made simultaneously with the execution of the Franchise Agreement.
This deferral of the initial franchise fee provides a benefit to the franchisee by allowing them to delay the initial investment until Boulder Designs has fulfilled its initial obligations and the franchisee has started their business operations. This can help with cash flow during the initial setup phase of the franchise.
Prospective franchisees should carefully review the Franchise Agreement and any related amendments to fully understand the specific obligations that Boulder Designs must meet before the franchise fee becomes due. Understanding these obligations is crucial for planning the launch of the franchise and managing initial finances.