How often does the Boulder Designs Late Fee accrue on overdue balances?

According to Boulder Designs' 2025 Franchise Disclosure Document, a late fee of $100 is applied to all overdue Royalty Fees and other amounts due to Boulder Designs. This fee is incurred if payments are not made by the 11th day of each month. Importantly, the late fees continue to accrue each month if balances from previous months remain unpaid and carry over into the current month. This means a franchisee could face compounding late fees if they do not promptly address overdue amounts.

This policy is fairly standard in franchising, as franchisors need to ensure timely payments to maintain their own financial obligations and support the franchise system. The continuous accrual of late fees is a strong incentive for franchisees to manage their finances carefully and prioritize payments to Boulder Designs. The late fee also applies to any understatement in amounts due revealed by an audit, which means that if an audit uncovers that a franchisee has underpaid, they will not only owe the underpaid amount but also a $100 late fee.

For a prospective Boulder Designs franchisee, this highlights the importance of maintaining accurate financial records and ensuring timely payments to avoid accumulating late fees. It also underscores the need to be prepared for potential audits and to ensure compliance with all financial reporting requirements. Failing to do so could result in a significant increase in costs due to the compounding nature of the late fee policy.