Does continuation of territorial protection for a Boulder Designs franchise currently depend on achieving certain sales volume or market penetration?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
r within your Territory.
Currently continuation of your territorial protection does not depend on your achieving any certain sales volume, market penetration, or other contingency. However, we have the right to implement a Minimum Gross Revenue requirement by providing you at least 30 days' advance written notice. We do not currently impose such a requirement, but, if imposed, we anticipate that the Minimum Gross Revenue Requirement will not exceed $30,000 annually and your failure to meet the requirement may result in an obligation to attend re-boot training at your expense. If you refuse to attend re-boot training when we require, you will be granted thirty (30) days to cure this default. If you are not able to cure this default within the 30-day period, we have the right to terminate the Franchise Agreement.
The boundaries of your territory may be altered only by mutual consent, but we have the unilateral right to convert a Separate Territory into a Shared Territory in our sole discretion. A Separate Territory may be converted into a Shared Territory should you fail to meet a minimum performance target or minimum gross revenue requirement as mentioned above. Such Shared Territory would consist of a population greater than 450,000. We do not offer any options, rights of first refusal, or similar rights to acqui
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, currently, the continuation of territorial protection does not depend on achieving specific sales volume or market penetration. However, Boulder Designs retains the right to implement a Minimum Gross Revenue requirement with at least 30 days' advance written notice.
If Boulder Designs imposes this requirement, it is anticipated to be no more than $30,000 annually. Failure to meet this minimum gross revenue requirement may obligate the franchisee to attend re-boot training at their own expense. Refusal to attend this training when required can lead to a 30-day period to correct the default, after which Boulder Designs has the right to terminate the Franchise Agreement.
Furthermore, the boundaries of a franchisee's territory can be altered by mutual consent. Boulder Designs has the unilateral right to convert a Separate Territory into a Shared Territory if a franchisee fails to meet a minimum performance target or minimum gross revenue requirement. This Shared Territory would consist of a population greater than 450,000. This is a fairly standard practice in franchising, where franchisors often set minimum performance standards to ensure franchisees are actively developing their territories. However, the FDD also states that Boulder Designs does not offer any options, rights of first refusal, or similar rights to acquire additional franchises.