Is there any mention of prepayment penalties in the Boulder Designs Promissory Note?

According to Boulder Designs's 2025 Franchise Disclosure Document, the Promissory Note can be prepaid without penalty. Specifically, the document states that the note may be prepaid in whole or in part at any time without incurring any penalty or premium. This provides flexibility for the franchisee in managing their debt obligations.

Any prepayments made on the Promissory Note will first be applied to cover any accrued and unpaid interest. After the interest is settled, the remaining amount of the prepayment will be directed towards the unpaid installments of the principal. The application of the prepayment to the principal will occur in the inverse order of their stated maturity, meaning the last installments due will be paid first.

This clause benefits the franchisee, as it allows them to reduce their debt without incurring extra charges. It also specifies how the payments will be applied, ensuring transparency in the process. Franchisees should keep this in mind as they manage their finances and consider the timing of prepayments to optimize their financial strategy with Boulder Designs.