What pre-opening obligations must Boulder Designs complete before initial fees are paid by a Minnesota franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Section 8.09 Nature and Assistance of Training
Franchisee agree that Franchisor is not obligated to provide any training or assistance to Franchisee's particular level of satisfaction, but as a function of Franchisor's experience, knowledge, and judgment. Franchisee also acknowledge that Franchisor is not obligated to provide any services to Franchisee that are not set forth in this Agreement. If Franchisee believes the Franchisor has failed to adequately provide any pre-opening services to the Franchisee or to its employees, whether with respect to site selection, selection and purchase of equipment and supplies, training, or any other matter affecting the establishment of Franchisee's BOULDER DESIGNS business, Franchisee must immediately notify the Franchisor in writing within thirty (30) days following the opening of Franchisee's BOULDER DESIGNS business or the Franchisee will be deemed to conclusively acknowledge that all pre-opening and opening services required to be provided by the Franchisor were sufficient and satisfactory in Franchisee's judgment, and complied with all representations made to the Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Boulder Designs does not explicitly list pre-opening obligations that they must complete before initial fees are paid by a franchisee. However, Section 5.5.1 states that by commencing operations, the franchisee acknowledges that Boulder Designs has fulfilled all obligations required prior to opening. This implies that Boulder Designs has certain pre-opening obligations.
Item 8.09 states that if the franchisee believes Boulder Designs has failed to adequately provide any pre-opening services, the franchisee must notify Boulder Designs in writing within 30 days following the opening of the Boulder Designs business. Failure to do so will be deemed as acknowledgement that all pre-opening and opening services were sufficient and satisfactory.
To gain a comprehensive understanding of Boulder Designs' specific pre-opening obligations, a prospective franchisee should directly ask Boulder Designs for a detailed list of these obligations and the timeline for their completion. This will ensure clarity and alignment of expectations before entering into the franchise agreement.