What activities are prohibited under the post-termination covenant not to compete for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any Covered Person shall, for a period of three years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity:
6.2 employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or
6.3 own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with, any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise operated pursuant to a valid franchise agreement with Franchisor.
This restriction shall apply, while I am an Owner, to any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Franchisor or its Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks.
It will apply for two years after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first) to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks.
If the two-year restrictive period would be unenforceable under applicable law as an unreasonable restraint of trade, then such restriction is modified to prohibit you and each Owner, as applicable, from soliciting or providing services, during said two-year period, to any client previously serviced by the Franchised Business.
This two-year restriction will be tolled during any period of my noncompliance.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the post-termination covenant not to compete restricts franchisees and any 'Covered Person' from engaging in certain activities for a specified period after the franchise agreement expires or terminates. Unless Boulder Designs provides written approval, franchisees are prohibited from directly or indirectly participating in specific actions for three years after the agreement ends, regardless of the reason for termination.
These prohibited activities include employing or attempting to employ anyone who has been a salaried managerial employee of Boulder Designs or its affiliates within the previous 30 days, or inducing such a person to leave their employment. Franchisees also cannot own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide assistance to, or have any interest in any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise operated under a valid franchise agreement with Boulder Designs.
The restriction applies while the individual is an owner, to any location within the United States, its territories, or any other country where Boulder Designs or its affiliates have used or registered their trademarks. After ceasing to be an owner, the restriction applies for two years to any location within the territory or market area of any other business operating under the Boulder Designs system. If the two-year restrictive period is deemed unenforceable under applicable law, it will be modified to prohibit soliciting or providing services to any client previously serviced by the franchised business during that period. This two-year restriction will be tolled during any period of noncompliance.