What businesses are considered a 'Competitive Business' to a Boulder Designs franchise?

According to Boulder Designs' 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business that offers or provides engraved concrete signage or concrete landscaping products, or other products or services that are the same as or similar to those sold by a Boulder Designs franchise. This definition also includes businesses that grant franchises or licenses to others to operate businesses offering similar products or services. The key factor is whether the business activities could potentially use Boulder Designs' trade secrets or confidential information to the disadvantage of the franchisor, its affiliates, or other franchisees.

However, there are exceptions to this definition. A business operated by the franchisee under a franchise agreement with Boulder Designs is not considered a 'Competitive Business'. Additionally, a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest is also excluded from being classified as a 'Competitive Business'.

This definition is important because it outlines the scope of activities a franchisee (and certain related individuals) is restricted from engaging in, both during the term of the franchise agreement and for a period of time after the agreement terminates. The non-competition clauses in the franchise agreement prevent franchisees from directly or indirectly participating in competitive businesses within a specified geographic area, typically around the franchise's approved location or territory. Understanding this definition is crucial for prospective franchisees to assess potential conflicts of interest and limitations on their business activities.