What security is required by Boulder Designs for financing an Equipment and Supplies Package?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item Financed (Source) | Amount Financed | Down Payment | Max. Term (years) | Annual % Rate of Interest | Monthly Payment | Pre payme nt Penalty | Security Required | Liability upon Default | Loss of Legal Right on Default |
|---|---|---|---|---|---|---|---|---|---|
| Equipment and Supplies Package | Up to 50% of the cost of the package if it is new equipment, including any upgrades; up to 75% of the cost of the package if it is used or refurbished equipment | Depends on credit rating | 42 months | 8.5% | Principal and interest amortized over 42 months | None | Personal Guaranty; Security Agreeme nt | Call loan; Repossess equipment; Terminate franchise agreement | Waive demand, presentment for payment protest, notice of intent to accelerate, notice of acceleration |
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if Boulder Designs provides financing for the Equipment and Supplies Package, the security required includes a Personal Guaranty and a Security Agreement. This means that in addition to the equipment itself serving as collateral, Boulder Designs will likely require a personal guarantee from the franchisee or its owners, making them personally liable for the debt.
The amount financed can be up to 50% of the cost if the equipment is new, or up to 75% if it is used or refurbished. The maximum term for the financing is 42 months, with an annual interest rate of 8.5%. Payments are structured as principal and interest amortized over the 42-month period.
In the event of default, Boulder Designs has the right to call the loan, repossess the equipment, and terminate the franchise agreement. Furthermore, the franchisee waives certain rights, such as the right to demand or protest payment, and notice of intent to accelerate or actual acceleration of the debt. Boulder Designs also requires an automatic bank withdrawal form to ensure timely payments.