Does the definition of 'Competitive Business' for Boulder Designs include businesses that offer concrete landscaping products?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Competitive Business" means any business that offers or provides (or grants franchises or licenses to others to operate a business that offers or provides) engraved concrete signage or concrete landscaping products or other products or services that are the same as or similar to those sold by the Franchised Business or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or Boulder Designs' other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a franchise agreement with Franchisor, (b) any business operated by a publicly-held entity in which Franchisee owns less than a 5% legal or beneficial interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that offer concrete landscaping products. This definition is important because it restricts the franchisee's ability to engage in similar business activities during the term of the franchise agreement and for a specified period afterward.
The FDD states that a 'Competitive Business' is any business that offers or provides engraved concrete signage or concrete landscaping products. This encompasses not only direct competitors selling identical items but also those offering similar products or services that could potentially draw customers away from the Boulder Designs franchise. The definition also extends to businesses that grant franchises or licenses to others for operating similar businesses.
This non-compete clause is designed to protect Boulder Designs' market share, trade secrets, and confidential information. However, there are exceptions. The definition of 'Competitive Business' does not apply to any business operated by the franchisee under a franchise agreement with Boulder Designs or any business operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest. This allows franchisees to operate multiple Boulder Designs locations or invest in larger, unrelated companies without violating the non-compete agreement.