Who is considered the 'Franchisee' in the Boulder Designs Franchise Agreement?

According to Boulder Designs' 2025 Franchise Disclosure Document, the 'Franchisee' is defined within the context of the Guaranty and Assumption of Obligations attached to the Franchise Agreement. Specifically, it refers to the business entity that enters into the Franchise Agreement with Boulder Designs Franchising, LLC.

The document emphasizes that the franchisor, Boulder Designs Franchising, LLC, relies on the Guaranty provided by individuals owning a beneficial interest in the Franchisee. This Guaranty is a prerequisite for Boulder Designs to enter into the Franchise Agreement with the Franchisee. The individuals providing the Guaranty are considered 'Owners' within the definition provided in the Franchise Agreement.

These 'Owners' commit to complying with specific articles of the Franchise Agreement, particularly those concerning the use and confidentiality of trade secrets and confidential information, as well as the assignment of interests in the Franchisee. Furthermore, even after ceasing to be an Owner, they are bound by certain restrictions, such as not diverting customers or employing individuals associated with Boulder Designs for a specified period. This structure ensures that Boulder Designs has recourse not only against the business entity (the Franchisee) but also against the individuals who own and control it, safeguarding the franchisor's interests and the integrity of the Boulder Designs system.