What section of the Boulder Designs Franchise Agreement is amended by this contract?
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, the amendment to the franchise agreement specifically modifies Section 3.1. This section likely pertains to the initial franchise fee payment terms. The amendment defers the payment of the initial franchise fees until Boulder Designs has fulfilled its initial obligations to the franchisee, indicating a conditional payment structure.
This amendment offers a potential benefit to the franchisee by aligning the payment of fees with the franchisor's performance. It reduces the upfront financial burden on the franchisee and ensures that Boulder Designs is committed to providing the necessary support and resources before receiving the franchise fee. This could be particularly advantageous for new franchisees who may be concerned about the initial investment and the franchisor's commitment to their success.
It is important for prospective Boulder Designs franchisees to understand the specific obligations that Boulder Designs must meet before the initial franchise fee becomes due. This includes clarifying the timeline for meeting these obligations and the consequences if Boulder Designs fails to meet them. Franchisees should also ensure that the amendment is properly executed and integrated into the franchise agreement to avoid any future disputes regarding the payment of fees.