Can Boulder Designs and its affiliates operate competing businesses under a different trademark in a franchisee's Territory?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Whether you operate within a Separate Territory or a Shared Territory, we and our affiliates have the right to operate and to grant others the right to operate similar or competing businesses under a different trademark in your Territory. We and our affiliates also have the right to distribute products and services identified by the BOULDER DESIGNS trademark through alternative channels of distribution, including online sales and infomercials. There are no restrictions on our soliciting or accepting orders from consumers inside your Territory, and we need not compensate you for soliciting or accepting orders from inside your Territory. You may neither directly solicit nor advertise outside of the Territory, including on the Internet, without our prior written consent.
We also reserve the right, to enter into agreements with specific regional or national customers in order to establish a National Account, in any area, including in the Territory. If we establish a National Account in your Territory you agree to service the National Account under the same terms, pricing, and provisions negotiated for the National Account. Under certain circumstances if we determine in our sole discretion that you are not capable of servicing the National Account, or if the volume of services exceed demand at the time, we may authorize other Boulder Designs franchisees or other qualified third-parties to provides the services and you will not be compensated for us or other franchisees providing services within your Territory.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, Boulder Designs and its affiliates retain the right to operate or grant others the right to operate similar or competing businesses under a different trademark within a franchisee's territory. This means that even if a franchisee is in compliance with their franchise agreement, Boulder Designs can still authorize other businesses, potentially competitors, to operate in the same area under a different brand. This could impact a franchisee's market share and revenue potential.
Boulder Designs also maintains the right to distribute products and services under the Boulder Designs trademark through alternative channels, including online sales and infomercials, without any obligation to compensate the franchisee for orders solicited or accepted from within their territory. Furthermore, Boulder Designs is not restricted from soliciting or accepting orders from consumers inside a franchisee's territory. However, the franchisee is restricted from soliciting or advertising outside of their territory, including online, without prior written consent from Boulder Designs.
Boulder Designs also reserves the right to establish National Accounts in any area, including a franchisee's territory. If a National Account is established in a franchisee's territory, the franchisee is obligated to service the National Account under the terms and pricing negotiated for that account. However, if Boulder Designs determines that the franchisee is unable to service the National Account or if the service volume exceeds demand, Boulder Designs may authorize other franchisees or third parties to provide the services, without compensating the original franchisee. This could lead to a franchisee losing potential revenue from large accounts within their own territory.