In Virginia, when does a Boulder Designs franchisee have to pay the initial franchise fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees in Virginia are 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 deferral of the initial franchise fee provides a significant benefit to prospective Boulder Designs franchisees in Virginia. It ensures that franchisees are not required to pay the fee until Boulder Designs has fulfilled its obligations, reducing the financial risk for the franchisee during the initial stages of the business. This arrangement offers a level of financial security, as the franchisee can be confident that Boulder Designs is committed to providing the necessary support and resources before receiving the initial fee.

This condition is specific to Virginia due to the regulatory requirements of the Virginia State Corporation Commission's Division of Securities and Retail Franchising. Franchisees in other states may have different payment schedules for the initial franchise fee, depending on the regulations in those states. Therefore, it is essential for prospective franchisees to carefully review the state-specific addenda in the FDD to understand the payment terms applicable to their location.