Does the definition of 'Competitive Business' for Boulder Designs include businesses that grant franchises?

According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that grant franchises or licenses to others. Specifically, a 'Competitive Business' is defined as any business that offers or provides engraved concrete signage or concrete landscaping products, or other similar products or services, including those that grant franchises or licenses to others to do the same.

This definition has implications for a Boulder Designs franchisee, particularly concerning non-competition agreements. The franchisee, and any individuals associated with the franchisee, are restricted from being involved with a 'Competitive Business' during their relationship with Boulder Designs and for a period afterward. This restriction extends not only to businesses directly offering similar products or services but also to those that franchise or license others to do so.

However, there are exceptions to this definition. A business operated by the franchisee under a franchise agreement with Boulder Designs is not considered a 'Competitive Business'. Similarly, a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest is also excluded. This means a franchisee can invest in a publicly-traded company that might be considered a competitor as long as their ownership stake remains below 5%.

This broad definition of 'Competitive Business' is fairly standard in franchising, as franchisors aim to protect their brand, trade secrets, and market share. Prospective Boulder Designs franchisees should carefully review the non-competition clauses in the franchise agreement to fully understand the scope of these restrictions and how they might impact future business opportunities.