According to the FDD, what is the 'System' that a Boulder Designs franchisee must follow?

Franchisor hereby grants to Franchisee, and Franchisee undertakes and accepts, upon the terms and conditions herein contained, a revocable, limited license to operate one BOULDER DESIGNS Business using the System and Marks.

Section 2.2 Approved Location

Subject to all of the terms and conditions herein, Franchisor grants to Franchisee the right and license to operate a Franchised Business using the System and the Marks at an approved location ("Approved Location") and solely within the Territory. Franchisee hereby accepts such right and license subject to such terms and conditions and undertakes to operate the Franchised Business and to use the System and Marks solely in connection therewith. If the Approved Location of the Franchised Business is not determined as of the Effective Date, then Franchisee shall have up to 30 days to propose a location to Franchisor for approval. If Franchisor does not deny Franchisee's proposed location within 30 calendar days, the location shall be deemed approved. If Franchisee receives a denial from Franchisor, Franchisee must submit a new location until approved. When the Approved Location is determined, its description shall be identified on the Key Terms Page. Franchisee must only operate the approved Boulder Designs Business from the approved location and no other business.

Section 2.3 Sub-franchising/Agents

Franchisee shall not sublicense the use of the System or Marks to any person or entity to perform any part of Franchisee's rights or obligations licensed herein, or to grant any person or entity the right to act as Franchisee's agent to perform any part of Franchisee's rights or obligations herein.

After you begin operating the Boulder Designs Business, we will:

• 1. be available to render advice, discuss problems and offer general guidance to Franchisee by telephone, e-mail, newsletters, webinars and other methods with respect to planning, opening and operating the Franchised Business as Franchisor deems appropriate, in its sole discretion. (Franchise Agreement, Section 14.1);
• 1. make available to you changes and additions to the System as generally made available to all franchisees; (Franchise Agreement, Section 10.2 and 14.4);
• 1. periodically, provide advertising and promotional materials including ad-slicks, brochures, fliers, and other materials for your use or purchase; (Franchise Agreement, Section 14.5);
• 1. maintain our websites located at www.boulderdesigns.net and continue to promote Boulder Designs Businesses through the Internet. We will prepare and maintain an interior page to our site promoting or giving information about your Franchised Business, whose leads will be directed solely to you; (Franchise Agreement, Section 11.3 and 11.4);
• 1. maintain our Social Media sites and applications such as: Twitter, Facebook, LinkedIn and other sites and applications that we may establish. We do allow you to utilize Social Media sites or applications for business purposes with the caveat that all content must be approved by us prior to use those created by us for your use. Further, any representations from you, or your employees regarding your profits or earnings made on any Social Media site or application, even if made from a personal Social Media account, is deemed a breach of Confidential

Information under the Franchise Agreement, and you will be responsible for all costs including legal costs for any required fines or legal actions as a result of your postings; (Franchise Agreement, Section 11.3 and 11.4);

• 1. provide you administrative bookkeeping and accounting control procedures as needed; (Franchise Agreement, Sections 12.1 to 12.5);
• 1. we may assist or require you to establish the maximum and minimum prices that you are offer to your customers to the extent permitted by law (Franchise Agreement, Section 14.2); and
• 1. Assist with setting up your shop and beginning production within 90 days following completion of initial training (Franchise Agreement, Section 8.11).

You must offer the services, and products we specify periodically in strict accordance with our standards and specifications. We also have the right to limit the type or size of boulder products that you are permitted to offer (e.g., you may not sell boulder products exceeding a certain weight or dimension), and/or to condition your right to offer certain types or sizes of products on your compliance with our then-current guidelines and/or agreement to pay additional administrative or assistance fees. Currently, we authorize you to offer and sell boulders up to 5,000 lbs. with dimensions not to exceed 60 inches by 72 inches. We may authorize the offer and sale of larger boulders, conditioned on your completion of certifications and training, payment of additional administrative and assistance fees, your execution of additional documentation.

You may not sell any services, classes or products that we have not authorized in writing and you must discontinue offering any services, classes or products that we may disapprove within 30 days. Boulder Designs may modify any of its specifications, standards, or requirements as and when it deems necessary and you must promptly modify your operation or product lines accordingly. There are no limits on our right to do so. If we modify the System, you may be required to add or replace equipment, supplies, signs and fixtures.

In addition, you must keep the Franchised Business open for the hours specified by the Manual(s) if applicable, and may only advertise through Boulder Designs approved media.

Franchisee must purchase, install, update, upgrade and use computer, credit card processing systems, surveillance systems, point-of-sale system, software and phone systems consisting of hardware and software in accordance with Franchisor's specifications listed in the Manual(s). The computer system and/or POS for your Franchised Business will be dedicated for the operation of your Boulder Designs business and used for no other purpose.

Franchisee shall fill out and submit a Quality Control Data Sheet for every job completed. These reports are due annually July 31 for all projects January 1st through June 30th and the report is due annually January 31st for all projects done between July 1st through December 31st of the prior year.

Franchisee shall submit the Local Marketing Report annually along with the Gross Revenue Reports as stated in Section 12.3. Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Manual.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–9)