What must a Boulder Designs franchisee do to pay amounts due to the franchisor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
milar writ or warrant or attachment by a creditor to occur against the location or any asset used in Franchisee's Boulder Designs Business.
Section 3.4 Electronic Transfer
Franchisor has sole discretion to determine and change the method by which Franchisee pays to Franchisor amounts due to Franchisor under this Agreement, which may include collecting payments through Franchisee's billing and collection agent. Currently, Franchisor requires all Royalty Fees and other amounts due from Franchisee to Franchisor to be paid either (a) through an Electronic Depository Transfer Account
or (b) by Franchisee electronically transferring to Franchisor any funds due Franchisor. Within 15 days after successfully completing training, but no later than 30 days prior to opening the Franchised Business, Franchisee shall open and maintain an Electronic Depository Transfer Account ("ACH") and shall provide Franchisor with continuous access to such account for the purpose of receiving any payments due to Franchisor, by signing and returning an ACH Withdrawal Form in the form prescribed by Franchisor. Franchisee will give its financial institution instructions, in a form Franchisor provides or approves, and will obtain the financial institutions agreement to follow these instructions. Franchisee will provide Franchisor with copies of these instructions and agreements.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor has the sole discretion to determine and change the method of payment. Currently, all royalty fees and other amounts due must be paid either through an Electronic Depository Transfer Account.
Prior to opening the franchised business, a Boulder Designs franchisee must pay in full all amounts due to the franchisor. However, the franchisee can execute a Promissory Note and Security Agreement for any due amounts, if applicable.
If any taxes, fees, or assessments are imposed on the franchisee's payment of any fees (excluding taxes on the franchisor's net taxable income), the franchisee is responsible for paying these amounts within 15 days of receiving written notice from Boulder Designs. The franchisee is also responsible for promptly paying all taxes required by federal, state, or local tax authorities, including unemployment, withholding, sales, use, income, tangible commercial personal property, real estate, and intangible taxes.