What activities are prohibited under the non-competition agreement for Boulder Designs franchisees?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. own an interest in, manage, operate or provide services to any Competitive Business located or operating (a) within 25 miles of the Approved Location or within the Territory (whichever is greater), and (b) within 25 miles of the location of any other BOULDER DESIGNS Business in existence at the time of termination or expiration; or
- ii. solicit or otherwise attempt to induce or influence any customer, employee or other business associate of Franchisor, its Affiliate(s) or any other franchisee to terminate or modify his, her or its business relationship with Franchisor, its Affiliate(s) or any other franchisee, by direct or indirect inducement or otherwise.
Individual agrees that for the period the Individual has a relationship with Franchisee and the period of two years after the Individual no longer has a relationship with Franchisee and has ceased engaging in the conduct stated below, Individual shall not, directly or indirectly, own an interest in, manage, operate, provide services to, carry on, be engaged in or take part in, or share in the earnings of any Competitive Business anywhere within (1) the greater of: (i) 25 miles of Franchisee's Approved Location as described in the Franchise Agreement; or (ii) the Territory, as detailed in Section 2.5 of the Franchise Agreement, also described as follows:
"Competitive Business" means any business that offers or provides (or grants franchises or licenses to others to operate a business that offers or provides) offers or sells engraved concrete signage or concrete landscaping products or other products or services that are the same as or similar to those sold by the Franchised Business or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or Boulder Designs' other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a franchise agreement with Franchisor, (b) any business operated by a publicly-held entity in which Franchisee owns less than a 5% legal or beneficial interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, both during the term of the franchise agreement and for a period afterward, franchisees face certain restrictions to prevent unfair competition. Specifically, the franchisee cannot own, manage, operate, or provide services to a Competitive Business within a defined geographic area. This area is the greater of 25 miles from the approved Boulder Designs location or the territory granted in the Franchise Agreement. The non-compete also extends 25 miles from any other Boulder Designs business existing at the time of termination or expiration of the franchise agreement.
A "Competitive Business" is defined as any business offering engraved concrete signage, concrete landscaping products, or similar products/services to those sold by Boulder Designs. This definition also includes businesses where Boulder Designs' trade secrets or confidential information could be used to the detriment of the franchisor or other franchisees. However, the non-compete does not apply to businesses operated under a Boulder Designs franchise agreement or publicly-held entities in which the franchisee owns less than a 5% interest.
Furthermore, franchisees are prohibited from soliciting or attempting to influence any customer, employee, or business associate of Boulder Designs, its affiliates, or other franchisees to terminate or modify their business relationships with the company. Boulder Designs also has the right to require officers, managers, partners, and certain other individuals to sign a non-disclosure and non-competition agreement. These restrictions aim to protect Boulder Designs' market share, confidential information, and relationships with customers and employees.