When are all sums owing to Boulder Designs due after the Effective Date of Termination or Expiration of the Agreement?

According to Boulder Designs' 2025 Franchise Disclosure Document, all outstanding payments to Boulder Designs, including damages, liquidated damages, costs, expenses, unpaid Royalty Fees, Marketing Fees, Technology Fees, or any other amounts owed to Boulder Designs or its affiliates, become due within five days after the termination or expiration date of the Franchise Agreement. This also applies to the date on which the franchisee completes all post-termination obligations, whichever comes first.

This means that a franchisee must promptly settle all financial obligations with Boulder Designs upon the end of their franchise term, whether through termination or expiration. This includes not only standard fees but also any additional costs or damages that may arise from the termination process or from failing to meet obligations under the agreement. The franchisee is responsible for ensuring all post-termination duties are fulfilled to avoid further financial penalties.

The quick turnaround time for payment emphasizes the importance of financial planning for the end of the franchise agreement. Franchisees should be prepared to make these payments promptly to avoid potential legal action or additional fees. It is also important to understand what constitutes 'post-termination obligations' to ensure compliance and avoid further financial penalties.

This requirement is fairly standard in the franchise industry, as franchisors typically want to ensure a clean break and prompt settlement of accounts upon termination or expiration of an agreement. Franchisees should carefully review their franchise agreement and consult with legal and financial advisors to fully understand their obligations and plan accordingly.