To whom is the initial franchise fee for Boulder Designs paid?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of | Amount | Method of | When Due | To Whom Payment |
|---|---|---|---|---|
| Expenditure1 | Payment | is to be Made | ||
| Initial Franchise Fee2 | $63,000 | Lump sum | Upon signing franchise agreement | Us |
| Initial Training3 | $12,000 | Lump sum | Upon signing franchise agreement | Us |
| Site lease4 | $0 to $3,500 | As incurred | At landlord’s discretion | Landlord |
| Processor Machine Trailer, Equipment, Marketing, and Supplies Package5 | $57,250 | Lump sum | Before commencing operations | Us |
| Shipping Cost5 | $0 to $5,500 | As incurred | Before commencing operations | Third party vendor |
| Vehicle lease or financing6 | $1,500 to $2,000 | As arranged | Monthly/as arranged, a portion before opening | Leasing/financing Company |
| Type of | Amount | Method of | When Due | To Whom Payment |
| Expenditure1 | Payment | is to be Made | ||
| Hand Tools/Material Handling | $750 to $3,500 | As incurred | Before commencing operations | Third party vendors |
| Computer & Office Equipment7 | $0 to $1,750 | As incurred | Before commencing operations | Third party vendors |
| Telephone/cell | $0 to $750 | As | As invoiced | Third party vendors |
| phone | incurred | |||
| Signage | $50 to $200 | As incurred | Before commencing operations | Third party vendors |
| Travel and living expenses while training8 | $500 to $1,500 | As incurred | During training/before Opening | Airlines, hotels, car rental companies, restaurants, etc. |
| Insurance9 | $50 to $750 | As arranged | Monthly/as arranged, a portion before opening | Insurance company |
| Vehicle Insurance9 | $35 to $500 | As arranged | Monthly/as arranged, a portion before opening | Insurance company |
| Licensing and | $500 to $2,500 | As | During training/ | Third party vendors |
| permits | incurred | before opening | ||
| Legal/Accounting | $500 to $2,000 | As arranged | As incurred | Your chosen professionals |
| Shop Assistance | $6,500 | Lump | As incurred | Us |
| Fee10 | Sum | |||
| Additional Funds11 | $4,180 to $9,180 | As | As incurred | |
| (3 months) | incurred | |||
| Total12 | $146,815 to $172,380 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT SINGLE FRANCHISE (FDD pages 16–19)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the initial franchise fee is paid to 'Us,' which refers to the franchisor. Specifically, the initial franchise fee for a single franchise is $63,000, payable in a lump sum upon signing the franchise agreement.
For franchisees acquiring two Boulder Designs franchises simultaneously, the initial franchise fee is $110,000, also paid in a lump sum upon signing the franchise agreement. This bundled fee reflects a discount compared to paying two separate initial franchise fees.
In addition to the initial franchise fee, franchisees must also pay an initial training fee of $12,000, a processor machine trailer, equipment, marketing, and supplies package fee of $57,250, and a shop assistance fee of $6,500, all of which are also paid to Boulder Designs ('Us'). These fees, like the initial franchise fee, are crucial for securing the rights and resources necessary to begin operating a Boulder Designs franchise.