For Boulder Designs, what is a 'Controlled Entity' in the context of transferring the franchise agreement?

According to Boulder Designs' 2025 Franchise Disclosure Document, the term 'Affiliate' is defined as any business entity that controls, is controlled by, or is under common control with Franchisor. However, the document does not explicitly define 'Controlled Entity' in the context of transferring the franchise agreement.

While the FDD does not use the exact term 'Controlled Entity,' it does define 'Affiliate' which is relevant to understanding business relationships. The definition of 'Affiliate' indicates that Boulder Designs considers entities under common ownership or control to be related for the purposes of the franchise agreement. This could have implications for transfer scenarios if the franchisee is a business entity with affiliated companies.

Since the FDD does not directly address 'Controlled Entity' in the context of franchise transfer, prospective franchisees should seek clarification from Boulder Designs regarding how the transfer rules apply when the franchisee is a business entity with subsidiaries, parent companies, or other related entities. Specifically, it would be prudent to ask whether a transfer of ownership or control within the franchisee's corporate structure would trigger the transfer provisions of the franchise agreement.