In Virginia, what condition must be met before a Boulder Designs franchisee pays the initial franchise fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee in Virginia is not required to pay the initial franchise fee until Boulder Designs has completed its pre-opening obligations under the franchise agreement. This requirement is mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This means that Boulder Designs must fulfill all of its responsibilities, such as providing training, site selection assistance, and other support outlined in the franchise agreement, before the franchisee is obligated to pay the initial franchise fee.

This condition protects the franchisee by ensuring that Boulder Designs is committed to providing the necessary support and resources to help the franchisee establish their business before receiving payment. It also aligns with regulatory efforts to protect franchisees from potential risks associated with new franchise ventures. This deferral of payment provides a level of financial assurance to the franchisee, reducing the upfront financial burden and ensuring that the franchisor is invested in the franchisee's success from the outset.

For a prospective Boulder Designs franchisee in Virginia, this means they should carefully review the franchise agreement to understand what constitutes Boulder Designs' pre-opening obligations. They should also confirm with the Virginia State Corporation Commission's Division of Securities and Retail Franchising that this requirement is still in effect at the time they are considering the franchise opportunity. This deferral can be a significant benefit, allowing the franchisee to allocate their initial capital towards other essential startup costs, such as securing a location, purchasing equipment, and marketing their new business.