Within how many days of demand must a Boulder Designs franchisee pay the Default Fee?

According to Boulder Designs' 2025 Franchise Disclosure Document, a guarantor must pay all amounts due under the Guaranty within 14 days after receiving notice from Boulder Designs that the franchisee has failed to make the required payment. This obligation is part of a guarantee agreement where the guarantor ensures the franchisee's financial obligations are met.

This means that if a Boulder Designs franchisee defaults on their payment obligations, the franchisor will notify the guarantor, who is then legally bound to cover the outstanding amounts within the specified timeframe. The guarantor's responsibility is triggered by the franchisee's failure to pay, and the guarantor must act promptly to fulfill the financial obligations.

The agreement explicitly states that Boulder Designs does not need to exhaust its remedies against the franchisee before seeking recovery from the guarantor. This clause streamlines the collection process, allowing Boulder Designs to pursue the guarantor directly without first having to pursue legal action against the franchisee.

This arrangement provides Boulder Designs with an additional layer of financial security, as it has recourse to both the franchisee and the guarantor in case of payment defaults. Prospective franchisees should be aware of this requirement and ensure that their guarantor understands the obligations and timeline involved.