Is a conviction or 'no contest' plea to certain crimes grounds for termination of a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
The 2025 Boulder Designs Franchise Disclosure Document (FDD) states that Boulder Designs will not register or renew a franchise if certain individuals associated with the franchise have been convicted of certain crimes. Specifically, Boulder Designs will not grant a franchise to someone who, within the 10 years before applying, has been convicted of a felony, pleaded 'no contest' to a felony charge, been convicted of a misdemeanor, or pleaded 'no contest' to a misdemeanor charge involving violations of franchise, antifraud, or securities laws; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices.
This policy extends beyond just convictions. Boulder Designs also considers civil actions alleging similar misconduct. If an individual has been the subject of a civil action alleging violations of franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices, this could also impact the franchise application.
Furthermore, Boulder Designs may deny a franchise to anyone subject to an injunctive or restrictive order related to franchise, securities, antitrust, trade regulation, or trade practice law, or any other business activity, especially those affecting professional licenses. This comprehensive approach suggests that Boulder Designs places a high priority on the ethical and legal compliance of its franchisees, aiming to protect the brand and the interests of other franchisees within the system.