What is considered a 'Competitive Business' in relation to a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Competitive Business" means any business that offers or provides (or grants franchises or licenses to others to operate a 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 the Franchised Business or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or Boulder Designs' other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a franchise agreement with Franchisor, (b) any business operated by a publicly-held entity in which Franchisee owns less than a 5% legal or beneficial interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
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. This definition also extends to businesses that grant franchises or licenses to others for operating businesses that offer or sell similar products or services to those of a Boulder Designs franchise. The key factor is whether the business activities are the same as or similar to those of a Boulder Designs franchise.
The definition also includes businesses where Trade Secrets or other Confidential Information could be used to the disadvantage of Boulder Designs, its affiliates, or other franchisees. This highlights the importance of protecting proprietary information and ensuring it is not used to benefit competing businesses. However, there are exceptions to this definition.
The term 'Competitive Business' does not apply to any business operated by a franchisee under a franchise agreement with Boulder Designs. It also does not apply to any business operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest. These exceptions provide clarity and allow franchisees to engage in other business activities without automatically being considered in competition with Boulder Designs, provided they meet the specified conditions.