What is the maximum term in years for Boulder Designs financing of an Equipment and Supplies Package?
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 Boulder Designs chooses to finance the equipment and supplies package, the maximum term is 42 months. This translates to 3.5 years. Boulder Designs may finance up to 50% of the cost if the equipment is new, or up to 75% if the equipment is used or refurbished. The interest rate is fixed at 8.5% per year.
The loan requires monthly payments of principal and interest, amortized over the 42-month term. There is no prepayment penalty, allowing franchisees to pay off the loan early without incurring additional fees. Boulder Designs requires a personal guaranty and a security agreement as security.
However, if a franchisee defaults on the loan, Boulder Designs can call the loan, repossess the equipment, and terminate the franchise agreement. Boulder Designs also requires franchisees to waive certain legal rights, such as demand, presentment for payment protest, notice of intent to accelerate, and notice of acceleration. To ensure timely payments, franchisees must authorize automatic bank withdrawals.
While the 8.5% interest rate is explicitly stated, the down payment amount depends on the franchisee's credit rating. It is important to note that Boulder Designs does not offer direct or indirect financing other than for the equipment and supplies package, and they do not guarantee any franchisee's notes, leases, or obligations.