factual

Can Boulder Designs alter the boundaries of a franchisee's territory?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

The boundaries of your territory may be altered only by mutual consent, but we have the unilateral right to convert a Separate Territory into a Shared Territory in our sole discretion. A Separate Territory may be converted into a Shared Territory should you fail to meet a minimum performance target or minimum gross revenue requirement as mentioned above. Such Shared Territory would consist of a population greater than 450,000. We do not offer any options, rights of first refusal, or similar rights to acquire additional franchises.

Source: Item 12 — TERRITORY (FDD pages 32–34)

What This Means (2025 FDD)

According to Boulder Designs's 2025 Franchise Disclosure Document, the boundaries of a franchisee's territory can be altered under specific conditions. While territory boundaries can be altered by mutual consent, Boulder Designs retains the unilateral right to convert a Separate Territory into a Shared Territory at its sole discretion.

This conversion from a Separate Territory to a Shared Territory may occur if a franchisee fails to meet a minimum performance target or a minimum gross revenue requirement. The document specifies that if a minimum gross revenue requirement is implemented, it will not exceed $30,000 annually. Failure to meet this requirement may obligate the franchisee to attend re-boot training at their own expense, and failure to attend or cure the default within 30 days may lead to termination of the Franchise Agreement. A Shared Territory resulting from such a conversion would consist of a population greater than 450,000.

It is important to note that Boulder Designs does not offer franchisees any options, rights of first refusal, or similar rights to acquire additional franchises. This means that franchisees do not have a guaranteed opportunity to expand their territory or prevent others from operating nearby, except as outlined in their initial franchise agreement. Prospective franchisees should carefully consider these factors and discuss territory specifics with Boulder Designs before signing the agreement.

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.