For a Boulder Designs franchise, when is the Franchise Fee payment due?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
or or its personnel or agents.
- (c) Reliance by a franchisee on the franchise disclosure document, including any exhibit thereto.
- (d) Violations of any provision of this division.
Boulder Designs® 1 Exhibit 9 Franchise Agreement | 2025
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
AMENDMENT TO THE FRANCHISE AGREEMENT REQUIRED BY THE STATE OF HAWAII
| This Amendment to the Boulder Designs Franchise Agreement dated, 20 between | ||
|---|---|---|
| Boulder Designs Franchising, LLC, ("Franchisor") and | ||
| ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. | ||
| 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 standard procedure is that the initial franchise fee is due upon execution of the franchise agreement. However, the FDD also states that there can be an amendment to the franchise agreement that defers the payment of the initial franchise fee.
Specifically, Section 3.1 of the Franchise Agreement can be amended so that payment of the initial franchise fees will be deferred until Boulder Designs Franchising, LLC has met its initial obligations to the franchisee and the franchisee has commenced business operations. This amendment is executed simultaneously with the franchise agreement.
This deferred payment structure could be advantageous for a new Boulder Designs franchisee, as it allows them to conserve capital during the initial setup phase of the business. Instead of paying the franchise fee upfront, the franchisee can use those funds to cover other startup costs, such as inventory, equipment, and marketing expenses. It is important to note that this deferral is not automatic; it requires a specific amendment to the franchise agreement.