For a Boulder Designs franchise in South Dakota, when is the franchise fee payment due?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the North Dakota Franchise Investment Law, N.D. Cent. Code 51- 1901 through 51-19-17, and the policies of the Office of the State of North Dakota Securities Commission, the Disclosure document for Boulder Designs Franchising, LLC for use in the State of North Dakota shall be amended as follows:
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 Boulder Designs' 2025 Franchise Disclosure Document, the standard policy is that the initial franchise fee is due upon signing the Franchise Agreement. However, for franchisees in North Dakota, there is an amendment that alters this payment schedule.
Specifically, for Boulder Designs franchises in North Dakota, the payment of the franchise fee is deferred. This means that franchisees are not required to pay the fee upfront. Instead, the payment is delayed until Boulder Designs has fulfilled its initial obligations to the franchisee, and the franchisee has actually commenced business operations. This amendment is made in recognition of the North Dakota Franchise Investment Law.
While the excerpt specifies the payment terms for North Dakota, it does not provide specific information regarding the payment terms for South Dakota. Therefore, it's important for prospective franchisees in South Dakota to directly confirm the payment schedule and any potential deferral options with Boulder Designs to ensure clarity on when the franchise fee is due.