According to the Boulder Designs Franchise Agreement, where must disputes be mediated?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. Integration/merger clause | Section 22.6 | Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 23.7 | Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law) |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 44–50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, disputes, with some exceptions, must be mediated in McLennan County, Texas. This is detailed in Item 20, which summarizes key provisions of the franchise agreement.
Specifically, the FDD states that except for actions seeking injunctive relief, specific performance, or those relating to trademarks, trade secrets, or confidential information, all disputes must undergo mediation in McLennan County, Texas. McLennan County is where Waco, Texas is located. Waco, Texas is also the location of Boulder Designs' principal place of business.
This means that if a franchisee has a dispute with Boulder Designs that doesn't involve those specific legal actions or intellectual property concerns, they will be required to participate in mediation in McLennan County, Texas. This could involve travel and associated expenses for the franchisee, potentially increasing the cost and complexity of resolving disputes. Franchisees should consider this when evaluating the franchise opportunity, as it may impact their ability to effectively address grievances with the franchisor.