For a Boulder Designs franchise, when are initial fees deferred until?

According to the 2025 Boulder Designs Franchise Disclosure Document, the payment of initial franchise fees is deferred until Boulder Designs has met its initial obligations to the franchisee and the franchisee has commenced doing business. This amendment to the franchise agreement is entered into simultaneously with the execution of the Franchise Agreement.

This means a new Boulder Designs franchisee won't have to pay the initial franchise fee upfront. Instead, the payment is delayed until Boulder Designs fulfills its initial responsibilities outlined in the agreement. This could include providing training, site selection assistance, or other pre-opening support. The fee is further deferred until the franchisee actually starts operating their Boulder Designs business.

This deferral could be beneficial for franchisees as it reduces the initial financial burden and aligns the payment of fees with the commencement of business operations. However, it's important for prospective franchisees to understand exactly what Boulder Designs's initial obligations are and what constitutes "commencing business" to avoid any misunderstandings or disputes later on. Franchisees should carefully review the franchise agreement and discuss these points with the franchisor to ensure clarity.