Which items in the Boulder Designs Disclosure Document discuss the franchisee's obligation for pre-opening purchases/leases?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Section 5.5 Opening
Before opening the Franchised Business and commencing business, Franchisee must:
i. fulfill all of its obligations pursuant to the other provisions of this Section 5.6;
- ii. furnish Franchisor with copies of all insurance policies required by this Agreement and by the lease (if the Approved Location is leased), or such other evidence of insurance coverage and payment of premiums as Franchisor may request;
- iii. complete initial training to the satisfaction of Franchisor;
- iv. hire and train the personnel necessary or required for the operation of the Franchised Business;
- v. obtain all necessary permits and licenses;
- vi. purchase all Opening Project inventory not purchased pursuant to Section 5.4, as stated in Section 8.2;
- vii. if Franchisee is a business entity, Franchisee has caused each of its stock certificates or other ownership interest certificates to be conspicuously endorsed upon the face thereof a statement in a form satisfactory to Franchisor that such ownership interest is held subject to, and that further assignment or transfer thereof is subject to, all restrictions imposed upon transfers and assignments by this Agreement; and
- 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.
5.5.1 BY VIRTUE OF COMMENCING OPERATIONS OF YOUR BUSINESS, FRANCHISEE ACKNOWLEDGES THAT FRANCHISOR HAS FULFILLED ALL OF ITS OBLIGATIONS TO FRANCHISEE THAT FRANCHISOR IS REQUIRED TO FULFILL PRIOR TO THE OPENING OF YOUR BOULDER DESIGNS BUSINESS.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, Section 5.5, "Opening," within Item 22, "Contracts," outlines several obligations a franchisee must fulfill before opening their Boulder Designs business. These include furnishing copies of required insurance policies, completing initial training, hiring and training personnel, and obtaining necessary permits and licenses.
Specifically, the franchisee is obligated to purchase all Opening Project inventory not already purchased, as detailed in Section 8.2. Additionally, the franchisee must ensure that if they are a business entity, their stock certificates are properly endorsed to reflect transfer restrictions. Finally, the franchisee must pay all amounts due to Boulder Designs in full or execute a Promissory Note and Security Agreement for any outstanding amounts.
These conditions must be met within 180 days of the Effective Date of the agreement, and the franchisee must be prepared to continuously operate the business. The agreement emphasizes that time is of the essence. By commencing operations, the franchisee acknowledges that Boulder Designs has fulfilled all pre-opening obligations.