factual

What actions related to the transfer of the Boulder Designs business can lead to termination of the Franchise Agreement?

Boulder_Designs Franchise · 2025 FDD

Answer 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)
v. Choice of forum Section 23.2 Litigation must be initiated and maintained in the judicial district in which our principal place of business is located at the time the lawsuit was initiated, currently Waco, Texas. We have the right to seek injunctive relief from any court of competent jurisdiction. (Subject to state law)
w. Choice of law Section 23.1 Texas law applies (subject to state law), except that disputes over the Marks will be governed by the United States Trademark Act of 1946.
Section in the
Franchise
Summary
Agreement
Agreement following a default, your interest in
the franchise will terminate.
5.4, 5.5.
We can terminate if you fail to develop the
and 16.2
Approved Location within 180 days after the
Effective Date of the Franchise Agreement. We
also can terminate for failure to pay the Initial
Franchise Fee or other amounts due within 10
days after receiving written notice; failure to
have your Internal Manager satisfactorily
complete any training program;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, the Franchise Agreement can be terminated if there is an attempted or actual transfer of the business that violates the Franchise Agreement. This means that if a franchisee tries to sell or transfer their Boulder Designs franchise without following the proper procedures and obtaining the necessary approvals from Boulder Designs, the franchisor has grounds to terminate the agreement.

This provision protects Boulder Designs by ensuring that any new franchisee meets their standards and is capable of operating the business successfully. It also allows Boulder Designs to maintain control over its brand and reputation by carefully vetting potential franchisees. For a prospective franchisee, this means they cannot simply sell their franchise to anyone; they must adhere to the transfer requirements outlined in the Franchise Agreement.

It is important for a Boulder Designs franchisee to understand the specific conditions and procedures for transferring the franchise, as outlined in the Franchise Agreement. Failure to comply with these requirements could result in the termination of the agreement and the loss of the franchise. Franchisees should consult with an attorney to fully understand their rights and obligations regarding the transfer of their Boulder Designs franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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