What is the late fee for a payment not received on time for the Boulder Designs Promissory Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Each payment will first be applied to accrued and unpaid interest and then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a late fee of Fifty Dollars ($50).
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee fails to make a payment on time according to the terms of the Promissory Note, they will be assessed a late fee. Specifically, any payment not received by Boulder Designs within ten days of its due date will be subject to a late fee. The amount of this late fee is $50.
This means that if a Boulder Designs franchisee's payment is even one day late beyond the 10-day grace period, they will incur a $50 charge. This applies to each instance of late payment, so consistent late payments will result in accumulating late fees.
Franchisees should ensure they understand the payment schedule and have systems in place to make timely payments to avoid these charges. It is a fairly standard practice in franchising to charge late fees, as it incentivizes timely payments and helps the franchisor manage its cash flow effectively.