What are the pre-opening obligations that Boulder Designs Franchisor must complete before receiving the Initial Fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisee acknowledges that Boulder Designs has fulfilled all pre-opening obligations once the franchisee commences business operations. Specifically, Section 5.5.1 of the franchise agreement states that by opening their Boulder Designs business, the franchisee acknowledges that the franchisor has met all requirements prior to opening. This means that Boulder Designs' obligations are considered complete once the franchisee begins operating.

This clause places the onus on the franchisee to ensure that all necessary pre-opening services and support have been adequately provided by Boulder Designs before starting operations. If a franchisee feels that Boulder Designs has not fulfilled its pre-opening responsibilities, the franchisee must notify Boulder Designs in writing within 30 days of opening their Boulder Designs business. Failure to do so constitutes an acknowledgement that Boulder Designs has provided sufficient and satisfactory services.

This arrangement is somewhat unusual in franchising. Typically, the FDD would list specific pre-opening obligations of the franchisor. The prospective franchisee should carefully evaluate what support they expect to receive from Boulder Designs prior to opening, and ensure that these expectations are clearly communicated and met before commencing operations. It is critical to document any deficiencies or concerns in writing within the specified timeframe to preserve any potential claims.