What businesses are specifically excluded from being 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 similar products or services, that could potentially utilize Boulder Designs' trade secrets or confidential information to the detriment of the franchisor, its affiliates, or other franchisees. However, there are specific exceptions to this definition.

Specifically, the term 'Competitive Business' does not apply to two types of businesses. First, any business operated by the franchisee under a franchise agreement with Boulder Designs is excluded. This means a franchisee can operate multiple Boulder Designs locations without violating the non-compete clause. Second, any business operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest is also excluded. This allows a franchisee to invest in publicly traded companies that may have some competitive overlap with Boulder Designs, as long as their ownership stake remains below the 5% threshold.

This definition and its exceptions are important for prospective franchisees to understand, as they define the scope of activities that are considered competitive and therefore restricted under the franchise agreement. It allows franchisees to operate additional Boulder Designs franchises and make minor investments in publicly traded companies without violating the non-compete terms. However, franchisees should be aware that any other business ventures involving engraved concrete or landscaping products could be scrutinized as a potential conflict of interest.