What agreements must the Internal Manager for a Boulder Designs franchise sign?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchised Business must always be under the direct supervision of your Internal Manager, who must devote their full-time, best efforts to the operation of the Franchised Business. Your Internal Manager need not have an equity interest in the franchise, but must satisfactorily complete our initial training program and must sign a Non-Disclosure Agreement and Non-competition Agreement substantially in the form attached as Exhibit 2 to the Franchise Agreement. We also recommend, but do not require, that an individual with an equity interest in the franchise personally participate in the business and supervise operations.
If the franchisee is a business entity, anyone who owns an interest in the entity and their spouse must personally guarantee the performance of the franchisee's obligations under the Franchise Agreement by signing the Guaranty and Assumption of Obligations attached as Exhibit 3 to the Franchise Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, an Internal Manager must sign a Non-Disclosure Agreement and a Non-competition Agreement. These agreements must be substantially in the form attached as Exhibit 2 to the Franchise Agreement.
These agreements protect Boulder Designs's confidential information and prevent unfair competition. The Non-Disclosure Agreement ensures that the Internal Manager will not reveal any trade secrets or proprietary information learned during their employment. The Non-Competition Agreement restricts the Internal Manager from working for a competing business during and for a certain period after their employment with the Boulder Designs franchise.
While Boulder Designs recommends that an individual with an equity interest in the franchise personally participate in the business and supervise operations, it is not a requirement. However, if the franchisee is a business entity, anyone who owns an interest in the entity and their spouse must personally guarantee the performance of the franchisee's obligations under the Franchise Agreement by signing the Guaranty and Assumption of Obligations attached as Exhibit 3 to the Franchise Agreement.