What is the franchisee required to provide to Boulder Designs for approval to operate a franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Before opening the Franchised Business and commencing business, Franchisee must:
i. fulfill all of its obligations pursuant to the other provisions of this Section 5.6;
- ii. furnish Franchisor with copies of all insurance policies required by this Agreement and by the lease (if the Approved Location is leased), or such other evidence of insurance coverage and payment of premiums as Franchisor may request;
- iii. complete initial training to the satisfaction of Franchisor;
- iv. hire and train the personnel necessary or required for the operation of the Franchised Business;
- v. obtain all necessary permits and licenses;
- vi. purchase all Opening Project inventory not purchased pursuant to Section 5.4, as stated in Section 8.2;
- vii. if Franchisee is a business entity, Franchisee has caused each of its stock certificates or other ownership interest certificates to be conspicuously endorsed upon the face thereof a statement in a form satisfactory to Franchisor that such ownership interest is held subject to, and that further assignment or transfer thereof is subject to, all restrictions imposed upon transfers and assignments by this Agreement; and
- viii. pay in full all amounts due to Franchisor, or execute the Promissory Note and Security Agreement (attached hereto as Exhibit 9, if applicable) for any amounts due Franchisor.
Franchisee shall comply with these conditions and be prepared to continuously operate the Franchised Business within 180 days after the Effective Date. Time is of the essence.
5.5.1 BY VIRTUE OF COMMENCING OPERATIONS OF YOUR BUSINESS, FRANCHISEE ACKNOWLEDGES THAT FRANCHISOR HAS FULFILLED ALL OF ITS OBLIGATIONS TO FRANCHISEE THAT FRANCHISOR IS REQUIRED TO FULFILL PRIOR TO THE OPENING OF YOUR BOULDER DESIGNS BUSINESS.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, before opening a franchised business, a franchisee must fulfill several obligations. These include furnishing Boulder Designs with copies of all required insurance policies, including those mandated by the franchise agreement and any lease for the approved location. Alternatively, the franchisee can provide other evidence of insurance coverage and premium payments as requested by Boulder Designs.
Additionally, the franchisee must complete initial training to Boulder Designs' satisfaction and hire and train the necessary personnel for operating the franchise. They are also required to obtain all necessary permits and licenses. The franchisee must purchase all opening project inventory not already acquired and, if the franchisee is a business entity, ensure that all ownership interest certificates are endorsed with a statement, satisfactory to Boulder Designs, indicating that the ownership interest is subject to transfer restrictions outlined in the franchise agreement.
Finally, the franchisee must pay all amounts due to Boulder Designs in full or execute a Promissory Note and Security Agreement for any outstanding amounts. Compliance with these conditions is essential for the franchisee to continuously operate the franchised business within 180 days after the effective date of the agreement. By commencing operations, the franchisee acknowledges that Boulder Designs has fulfilled all obligations required before the business's opening.