If a Boulder Designs franchisee's payment does not clear their bank for any reason, what fee applies?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount1 | Due Date | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $100 per incident | Upon demand | Applies to all non-approved (ACH Debit) or returned payments made by you that do not fund or clear you bank for any reason whatsoever. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee's payment does not clear their bank for any reason, an insufficient funds fee applies. This fee is $100 per incident and is due upon demand. This applies to all non-approved ACH debit or returned payments made by the franchisee that do not clear their bank for any reason.
This means that if a Boulder Designs franchisee attempts to make a payment via ACH debit, and the payment is rejected by the bank due to insufficient funds or any other reason, the franchisee will be charged $100. This fee is in addition to the original payment amount that is still owed. The franchisor can demand immediate payment of this fee.
It is important for prospective Boulder Designs franchisees to maintain sufficient funds in their accounts to cover all payments to avoid incurring this fee. Franchisees should also ensure that their ACH debit information is accurate to prevent any payment issues. This fee is fairly standard in the franchise industry, as it covers the administrative costs associated with handling failed payments.