Is the Transfer Fee for a Boulder Designs franchise refundable upon payment?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 8.1 Initial Training
Franchisor shall make its initial training programs and re-boot training available to the Franchisee and its Internal Manager.
Upon execution of this Agreement, Franchisee shall pay Franchisor an Initial Training Fee in the amount specified in Exhibit 1, Key Terms Page. The initial training program consists of approximately five business day(s) of classroom training and on-the-job initial training program for the Franchisee and its initial manager. Instruction pertains to all material aspects of the operation of a BOULDER DESIGNS Business, including such topics as: BOULDER DESIGNS mission and principles; establishment of your business structure; legal filings; business licenses; banking and checking accounts; insurance; accounting and legal support; computer system and software installation; set up accounting systems; market research; marketing plan; optional establishment of office lease; employment suggestions; incoming call scripts; office administration; administrative management training; trademark usage guidelines; maintenance of quality standards; customer service techniques; record keeping and reporting procedures; other operational issues; resale, transfer, renewals and assignment training; vendor interaction and ordering, and on-the-job training. Franchisor shall conduct the initial training program either in person at its headquarters or at another designated location or locations, as Franchisor requires. Initial Training amount is fully earned and nonrefundable upon completion of the Franchisee's training. If Franchisee does not successfully complete the initial training, Franchisor reserves the right to deduct any amount from Franchisee's Initial Training Fee to cover Franchisor's expense and the cost of providing the initial training course in addition to Franchisee paying Franchisor the On-Site Training Cancellation Fee and the other rights of Franchisor pursuant to this agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Boulder Designs Franchise Disclosure Document, the document does not explicitly state whether the transfer fee is refundable. However, the FDD does specify under Section 8.1 that the Initial Training Fee is fully earned and nonrefundable upon completion of the Franchisee's training.
In the event that the franchisee does not successfully complete the initial training, Boulder Designs reserves the right to deduct any amount from the franchisee's Initial Training Fee to cover their expenses and the cost of providing the initial training course. Additionally, the franchisee would be responsible for paying Boulder Designs the On-Site Training Cancellation Fee, as well as adhering to the other rights of Boulder Designs as outlined in the agreement.
Prospective franchisees should carefully review the franchise agreement and related exhibits to understand the specific terms and conditions related to the transfer fee. It is advisable to seek clarification from the franchisor regarding the refundability of the transfer fee and under what circumstances, if any, a refund may be possible. Consulting with a legal or financial advisor can also provide valuable insights into the financial implications of the franchise agreement.