When is the initial fee for a Boulder Designs franchise due?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Amendment to the Boulder Designs Franchise Agreement dated, 20 between | ||
|---|---|---|
| Boulder Designs Franchising, LLC, ("Franchisor") and | ||
| ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. | ||
| 1. | Section 3.1 of the Franchise Agreement is amended to reflect that payment of Initial Franchise | |
| has commenced doing business. | Fees will be deferred until Franchisor has met its initial obligations to Franchisee, and Franchisee | |
| IN WITNESS WHEREOF, | Franchisee and Franchisor have executed this Amendment to the Franchise |
Section 8.1 Initial Training
Franchisor shall make its initial training programs and re-boot training available to the Franchisee and its Internal Manager.
Upon execution of this Agreement, Franchisee shall pay Franchisor an Initial Training Fee in the amount specified in Exhibit 1, Key Terms Page. The initial training program consists of approximately five business day(s) of classroom training and on-the-job initial training program for the Franchisee and its initial manager. Instruction pertains to all material aspects of the operation of a BOULDER DESIGNS Business, including such topics as: BOULDER DESIGNS mission and principles; establishment of your business structure; legal filings; business licenses; banking and checking accounts; insurance; accounting and legal support; computer system and software installation; set up accounting systems; market research; marketing plan; optional establishment of office lease; employment suggestions; incoming call scripts; office administration; administrative management training; trademark usage guidelines; maintenance of quality standards; customer service techniques; record keeping and reporting procedures; other operational issues; resale, transfer, renewals and assignment training; vendor interaction and ordering, and on-the-job training. Franchisor shall conduct the initial training program either in person at its headquarters or at another designated location or locations, as Franchisor requires. Initial Training amount is fully earned and nonrefundable upon completion of the Franchisee's training. If Franchisee does not successfully complete the initial training, Franchisor reserves the right to deduct any amount from Franchisee's Initial Training Fee to cover Franchisor's expense and the cost of providing the initial training course in addition to Franchisee paying Franchisor the On-Site Training Cancellation Fee and the other rights of Franchisor pursuant to this agreement.
Section 5.5 Opening
Before opening the Franchised Business and commencing business, Franchisee must:
- 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the initial franchise fee payment is deferred until Boulder Designs has met its initial obligations to the franchisee and the franchisee has commenced business.
Additionally, upon execution of the Franchise Agreement, the franchisee must pay Boulder Designs an Initial Training Fee, the amount of which is specified in Exhibit 1, Key Terms Page. The initial training program consists of approximately five business days of classroom and on-the-job training for the franchisee and its initial manager. The training covers all material aspects of the operation of a Boulder Designs business.
Before opening the franchised business, the franchisee must pay in full all amounts due to Boulder Designs, or execute the Promissory Note and Security Agreement for any amounts due. The franchisee must be prepared to continuously operate the franchised business within 180 days after the Effective Date.