Besides the Approved Location, what other geographic areas are covered by the post-termination covenant not to compete for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. own an interest in, manage, operate or provide services to any Competitive Business located or operating (a) within 25 miles of the Approved Location or within the Territory (whichever is greater), and (b) within 25 miles of the location of any other BOULDER DESIGNS Business in existence at the time of termination or expiration; or
- ii. solicit or otherwise attempt to induce or influence any customer, employee or other business associate of Franchisor, its Affiliate(s) or any other franchisee to terminate or modify his, her or its business relationship with Franchisor, its Affiliate(s) or any other franchisee, by direct or indirect inducement or otherwise.
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.
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 extends beyond the Approved Location. Specifically, for three years after the termination or expiration of the Franchise Agreement, the franchisee is restricted from engaging in a Competitive Business within 25 miles of the Approved Location or within the Territory, whichever is greater.
Additionally, the covenant applies within 25 miles of any other existing Boulder Designs Business at the time of termination or expiration. This means a franchisee could be restricted by multiple 25-mile radii, depending on how many other Boulder Designs locations are nearby when the franchise agreement ends.
It's also important to note that Boulder Designs has the right to require officers, managers, partners, and certain other individuals to sign non-disclosure and non-competition agreements. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities should they decide to leave the Boulder Designs system.