What is the maximum term in years for Boulder Designs financing of equipment and supplies?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item Financed (Source) | Amount Financed | Down Payment | Max. Term (years) | Annual % Rate of Interest | Monthly Payment | Pre payme nt Penalty | Security Required | Liability upon Default | Loss of Legal Right on Default |
|---|---|---|---|---|---|---|---|---|---|
| Equipment and Supplies Package | Up to 50% of the cost of the package if it is new equipment, including any upgrades; up to 75% of the cost of the package if it is used or refurbished equipment | Depends on credit rating | 42 months | 8.5% | Principal and interest amortized over 42 months | None | Personal Guaranty; Security Agreeme nt | Call loan; Repossess equipment; Terminate franchise agreement | Waive demand, presentment for payment protest, notice of intent to accelerate, notice of acceleration |
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee meets the credit standards set by Boulder Designs, the company may finance up to 50% of the cost if the equipment and supplies are new, or up to 75% if the equipment is used or refurbished. The maximum financing term is 42 months. The interest rate is 8.5% per year.
The Promissory Note, which outlines the financing terms, is payable in up to 42 monthly installments. The first 41 monthly installments will be equal payments of principal and accrued interest, with the 42nd and final installment covering all outstanding principal and unpaid accrued interest. The franchisee can prepay the Promissory Note at any time without incurring a penalty.
If a franchisee fails to make timely payments, Boulder Designs has the right to call the loan, demanding immediate payment of the full outstanding balance. In such cases, the franchisee may be responsible for court costs and attorneys' fees if Boulder Designs pursues a collection action. Additionally, failure to make payments on time could lead to the termination of the franchise agreement. To ensure timely payments, Boulder Designs requires franchisees to sign an automatic bank withdrawal form for automatic withdrawals from their bank account.