What is the principal sum that the debtor promises to pay to Boulder Designs Franchising, LLC?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, Franchisee and Franchisor have executed this Amendment to the Franchise Agreement simultaneously with the execution of the Franchise Agreement.
| FRANCHISOR: | FRANCHISEE: | |
|---|---|---|
| BOULDER DESIGNS | ||
| FRANCHISING, LLC | ||
| By: | By: | |
| Frank J. "Butch" Mogavero | Name/Title |
Chief Executive Officer
EXHIBIT 9 TO THE FRANCHISE AGREEMENT
PROMISSORY NOTE
PROMISSORY NOTE AND SECURITY AGREEMENT
| $ | , 20 |
|---|---|
| FOR VALUE RECEIVED, | , whose address |
| is ("Debtor", whether one or more) jointly and severally promises | |
| to pay to the order of Boulder Designs Franchising, LLC, a Texas limited liability company, or its affiliates, | |
| successors, | |
| and assigns ("Franchisor" or "PAYEE") at its offices at 2324 N. Robinson Drive, Waco, Texas | |
| 76706, or such other location as PAYEE may hereafter | designate, the principal sum of |
| and/100 Dollars ($), together with interest on the unpaid | |
| principal balance outstanding from time to time hereon at a rate equal to 8.5% per annum | or the Maximum |
| Rate, whichever is less, under the terms and conditions of this promissory note and security agreement | |
| ("Note"). This Note is due and payable in 42 | monthly installments of principal and interest. The first of |
| 42 | |
| payments shall be in an amount of $ commencing, 20, and on the | |
| first day of each and every calendar month thereafter, and the 42nd | and final installment shall be due on |
| , 20, on which date the entire unpaid principal balance and all accrued and unpaid | |
| interest is due and payable in full. Each payment will first be applied to accrued and unpaid interest and | |
| then to principal. Any payment not received by PAYEE within ten (10) days of its due date is subject to a | |
| late fee of Fifty Dollars ($50). | |
| "Maximum Rate" means the maximum lawful rate of interest permitted by applicable usury laws | |
| now or hereafter enacted which interest rate shall change when and as said laws change, to the extent | |
| permitted by law, effective on the day such change in said laws becomes effective. |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the debtor promises to pay Boulder Designs Franchising, LLC an unspecified principal sum, as indicated by the placeholders in the provided contract excerpt. The exact amount is not filled in, but the document specifies that this principal will accrue interest at a rate of 8.5% per annum or the Maximum Rate, whichever is less.
The promissory note is structured to be paid in 42 monthly installments, with the initial payment amount also left blank in the excerpt. Payments are first applied to cover any accrued and unpaid interest before reducing the principal balance. A late fee of $50 is applied to any payment received more than ten days after its due date.
If Boulder Designs terminates the Franchise Agreement due to reasons outlined in Section 16.2 of the agreement, or if the debtor fails to make a payment of principal or interest within ten days of the due date, Boulder Designs has the right to declare the entire unpaid principal balance and any accrued interest immediately due and payable. They can also foreclose on any liens and security interests securing the note.
Prospective franchisees should carefully review the Franchise Agreement and Promissory Note with legal and financial advisors to fully understand the financial obligations and potential consequences of default or termination.