When will the Franchise Fee payment be due for a Boulder Designs franchise in North Dakota?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.1 of the Franchise Agreement is amended to reflect that payment of Franchise Fee will be deferred until Franchisor has met its initial obligations to Franchisee, and Franchisee has commenced doing business.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the standard payment schedule for the initial franchise fee is modified for franchisees in North Dakota. Specifically, the FDD states that the payment of the franchise fee will be deferred.
This deferral means that a new Boulder Designs franchisee in North Dakota will not be required to pay the franchise fee upfront as is typical in most franchise agreements. Instead, the payment is delayed until two conditions are met. First, Boulder Designs Franchising, LLC must fulfill its initial obligations to the franchisee, which likely includes providing training, site selection assistance, and other startup support. Second, the franchisee must have commenced doing business, meaning they have started operating their Boulder Designs franchise.
This amendment to the franchise agreement is specific to North Dakota due to the state's franchise investment laws and the policies of the North Dakota Securities Commission. These regulations aim to protect franchisees from unfair or inequitable practices. By deferring the franchise fee, North Dakota ensures that franchisees receive the support they are promised before having to pay the full franchise fee, reducing the initial financial risk.