Does the definition of 'Competitive Business' for Boulder Designs include businesses offering similar landscaping products?

According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of a 'Competitive Business' does include businesses that offer similar landscaping products. Specifically, a 'Competitive Business' is defined as any business that offers or provides engraved concrete signage or concrete landscaping products that are the same as or similar to those sold by a Boulder Designs franchised business. This definition extends to businesses that grant franchises or licenses to others to operate businesses offering similar products or services.

This definition has significant implications for prospective franchisees. It means that during the term of their franchise agreement and for a period thereafter (as defined in the non-compete clause), franchisees are restricted from owning, operating, or being involved with any business that offers similar landscaping products or services within a specified geographic area. This restriction is designed to protect Boulder Designs' market share and prevent franchisees from using the franchisor's trade secrets or confidential information to compete against the Boulder Designs system.

However, the definition of 'Competitive Business' does not apply to businesses operated by the franchisee under a franchise agreement with Boulder Designs or to businesses operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest. This provides some limited exceptions to the non-compete restrictions. Franchisees should carefully review the non-compete provisions in the franchise agreement to fully understand the scope of these restrictions and their potential impact on future business opportunities.

It is important for potential Boulder Designs franchisees to understand the breadth of this definition and how it could impact their ability to engage in other business ventures, both during the term of the franchise agreement and after its termination or expiration. Due diligence should include a careful assessment of any existing or planned business activities to ensure compliance with the non-compete provisions.