Under what circumstances would a Boulder Designs franchisee be subject to additional initial training costs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
0 pages.
Training
When you sign the franchise agreement, you will also pay us $12,000 for You and your initial manager to attend and complete one level of training (Initial Training) over the course of approximately five business days. If you do not successfully complete the full initial training course, we reserve the right to deduct any amount from your Initial Training Fee to cover our expense and the cost of providing the initial training course in addition to you paying us the On-Site Training Cancellation Fee. If you purchase two Boulder Designs franchised business, you will only need to attend the training once so long you have not appointed a new initial Internal Manager. If you transfer controlling interest to a new owner, and/or you appoint a new Internal Manager, you are subject to additional initial training costs associated with training such new owners an
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–32)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees may incur additional initial training costs under specific circumstances. The standard initial training fee of $12,000 covers the franchisee and their initial manager. However, this fee only covers one level of training.
If a franchisee purchases two Boulder Designs franchises, they only need to attend the initial training once, provided they have not appointed a new initial Internal Manager. However, if the franchisee transfers controlling interest to a new owner or appoints a new Internal Manager, additional initial training costs will be required to train the new owners or managers.
This means that while the initial franchise fee covers the original franchisee and manager, any subsequent changes in ownership or management will necessitate further investment in training. This is a fairly standard practice in franchising, as it ensures that anyone operating the Boulder Designs business is properly trained in the company's methods and standards.