To whom is the initial training fee for Boulder Designs paid?

According to Boulder Designs' 2025 Franchise Disclosure Document, the initial training fee is paid to Boulder Designs, referred to as "Us" in the document. Specifically, the initial training fee is $12,000, which is due upon signing the franchise agreement. This fee covers the cost for the franchisee and their initial manager to attend and complete one level of training, which lasts approximately five business days.

It's important to note that this initial training fee is generally nonrefundable once the training is completed. However, if the franchisee does not successfully complete the initial training, Boulder Designs reserves the right to deduct expenses from the initial training fee to cover their costs of providing the training. Additionally, the franchisee may be required to pay an on-site training cancellation fee.

For franchisees purchasing two Boulder Designs franchises, the FDD states that they only need to attend the training once, provided they have not appointed a new internal manager. However, if controlling interest is transferred to a new owner or a new internal manager is appointed, additional training costs may apply to cover the training of these new individuals. This is a crucial consideration for prospective franchisees planning to expand or transfer ownership in the future.

This payment structure is fairly typical in the franchise industry, where initial training fees are paid to the franchisor to cover the costs of providing comprehensive training to new franchisees. Franchisees should carefully review Item 11 of the FDD for more details on the initial training program and any associated requirements.