What is the frequency of payments required under the Boulder Designs Promissory Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
This Note is due and payable in 42 | monthly installments of principal and interest. The first of | 42 | | payments shall be in an amount of $ commencing, 20, and on the | | first day of each and every calendar month thereafter, and the 42nd | and final installment shall be due on , 20, on which date the entire unpaid principal balance and all accrued and unpaid | | interest is due and payable in full. Each payment will first be applied to accrued and unpaid interest and | | then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a | | late fee of Fifty Dollars ($50).
If Franchisor terminates the Franchise Agreement dated as of the date hereof between Franchisor | and (the "Franchise Agreement") for any of the reasons stated in Section 16.2 | of the Franchise Agreement or, if Debtor fails to make a payment of principal, interest or any installment | thereof when due, and such failure continues for a period of ten (10) days, Franchisor may declare the entire | unpaid principal balance of, and all accrued but unpaid interest on, the indebtedness evidenced by this Note | immediately due and payable without notice or demand, foreclose all liens and security interests securing |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Promissory Note requires payments in 42 monthly installments. The first payment is due commencing in a specified month and year, with subsequent payments due on the first day of each calendar month thereafter. The 42nd and final installment is due on a specified date, at which time the entire unpaid principal balance and all accrued and unpaid interest are due in full.
Each payment will first be applied to any accrued and unpaid interest before being applied to the principal. If a payment is not received by Boulder Designs within ten days of its due date, it is subject to a late fee of $50.
If Boulder Designs terminates the Franchise Agreement for reasons stated in Section 16.2 of the Franchise Agreement, or if the franchisee fails to make a payment of principal, interest, or any installment when due and this failure continues for ten days, Boulder Designs can declare the entire unpaid principal balance and all accrued but unpaid interest immediately due and payable without notice or demand.