What articles contain the Non-Disclosure and Non-Competition covenants that the Boulder Designs franchisee must adhere to?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
In furtherance of this Section, Franchisor has the right to require officers, managers, and partners along with certain individuals and any Covered Person to execute a standard form non-disclosure or noncompetition agreements in a form the same as the Non-Disclosure and Non-Competition Agreement attached as Exhibit 2.
Section 17.3 Unfair Competition
If Franchisee operates any other business, Franchisee shall not use any reproduction, counterfeit, copy or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, that is likely to cause confusion, mistake or deception, or that is likely to dilute Franchisor's rights in the Marks. Franchisee shall not utilize any designation of origin, description or representation that falsely suggests or represents an association or connection with Franchisor. If Franchisor elects not to receive an assignment or sublease of the Approved Location, Franchisee shall make such modifications or alterations to the Approved Location (including changing telephone numbers) immediately upon termination or expiration of this Agreement as may be necessary to prevent any association between Franchisor or the System and any business subsequently operated by Franchisee or others at the Approved Location. Franchisee shall make such specific additional changes to the Approved Location as Franchisor may reasonably request for that purpose including, without limitation, removal of all physical and structural
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the Non-Disclosure and Non-Competition agreements are addressed in several sections. Specifically, Section 17.3 outlines unfair competition clauses, preventing franchisees from using imitations of Boulder Designs' trademarks or suggesting false associations with the franchisor. Additionally, the franchisor can require officers, managers, partners, and certain individuals to sign a Non-Disclosure and Non-Competition Agreement, as detailed in Exhibit 2. These measures aim to protect Boulder Designs' confidential information and market position.
The definition of "Confidential Information" includes technical and non-technical data related to Boulder Designs businesses that are not publicly known. This encompasses trade secrets, system standards, information in the franchise manual, financial data, and vendor lists. Franchisees and related individuals are prohibited from disclosing or using this information for their benefit or the benefit of others, even after their relationship with the franchisee ends. This obligation extends to informing future employers or customers of these confidentiality terms to protect the franchisee's rights.
The non-competition clauses restrict individuals from engaging in any Competitive Business, defined as businesses offering similar products or services to Boulder Designs, within a specified area. This restriction applies during the individual's relationship with the franchisee and for two years afterward. The restricted area is the greater of 25 miles from the franchisee's approved location or the designated territory. These covenants are designed to prevent unfair competition and protect Boulder Designs' market share and confidential information.