In California, will a Boulder Designs franchisee receive an exclusive territory?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ific unit is deferred until that unit is open.
- Item 12 is supplemented by the following:
You will not receive an exclusive territory. You may face competition from other franchisees, from businesses that we own, or from other channels of distribution or competitive brands that we control.
If you accept clients outside of your Territory, and if that area is another franchisee's territory, you must pay the Franchisor and the franchisee the Encroachment Fee of $1,000 per job performed and 50% of revenue generated from such sale to the franch
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee in California will not receive an exclusive territory. The FDD stipulates that franchisees may face competition from other franchisees, businesses owned by Boulder Designs, or other channels of distribution or competitive brands controlled by the company.
This lack of an exclusive territory means that a Boulder Designs franchisee in California could face direct competition from other Boulder Designs outlets or related businesses. This could impact their potential customer base and revenue. It is a departure from some franchise models that offer franchisees a protected territory to minimize competition.
Furthermore, if a Boulder Designs franchisee in California serves clients outside of their designated territory, and that area belongs to another franchisee, they must pay an encroachment fee. This fee consists of $1,000 per job performed and 50% of the revenue generated from that sale to the franchisee whose territory was encroached upon. This policy aims to protect franchisees' territories, even though exclusive territories are not granted upfront.
Prospective Boulder Designs franchisees in California should carefully consider the competitive landscape and the potential for encroachment fees when evaluating this franchise opportunity. Understanding the dynamics of competition and territorial responsibilities is crucial for financial planning and business strategy.