Is consent from other parties required for Boulder Designs to reduce obligations under Articles 7 and 17?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company reserves the right to reduce the scope of the obligations under the covenants contained in Articles 7 and 17 of the Franchise Agreement unilaterally and without the consent of any other person or entities effective upon giving notice thereof.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs reserves the right to reduce the scope of its obligations under the covenants contained in Articles 7 and 17 of the Franchise Agreement. This reduction can be done unilaterally, meaning without needing consent from any other person or entities. Boulder Designs only needs to provide notice of the change for it to become effective.
This clause gives Boulder Designs significant flexibility to modify its obligations under Articles 7 and 17, potentially impacting franchisees. Articles 7 and 17 likely cover important aspects of the franchise agreement, and the ability to change these without franchisee consent could affect the franchisee's rights or responsibilities.
For a prospective Boulder Designs franchisee, this means that the obligations outlined in Articles 7 and 17 at the time of signing the agreement could be altered during the term of the franchise. It would be prudent to carefully review Articles 7 and 17 to understand the scope of obligations that Boulder Designs can unilaterally change. A potential franchisee should seek clarification from Boulder Designs regarding the types of changes that could be made and how those changes might affect their business operations and profitability.