What section of the Franchise Agreement is amended by the Amendment to the Franchise Agreement for Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Amendment to the Boulder Designs Franchise Agreement dated, 20 between | ||
|---|---|---|
| Boulder Designs Franchising, LLC, ("Franchisor") and | ||
| ("Franchisee") is entered into simultaneously with the execution of the Franchise Agreement. | ||
| 1. | Section 3.1 of the Franchise Agreement is amended to reflect that payment of Initial Franchise | |
| has commenced doing business. | Fees will be deferred until Franchisor has met its initial obligations to Franchisee, and Franchisee | |
| 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 |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, Section 3.1 of the Franchise Agreement is amended by the Amendment to the Franchise Agreement. The amendment reflects that payment of the initial franchise fees will be deferred until Boulder Designs Franchising, LLC has met its initial obligations to the franchisee and the franchisee has commenced business.
This amendment is entered into simultaneously with the execution of the Franchise Agreement. This means that the changes to Section 3.1 are agreed upon at the same time the franchisee signs the main Franchise Agreement.
For a prospective Boulder Designs franchisee, this deferral of initial franchise fees could be a significant benefit, as it allows them to delay payment until Boulder Designs has fulfilled its initial obligations and the franchisee has started operations. This can ease the initial financial burden of starting the franchise. However, it is important for the franchisee to understand exactly what Boulder Designs's initial obligations are and when they are considered to be met, as this will trigger the requirement to pay the franchise fees.