Does the definition of 'Covered Person' for a Boulder Designs franchise include family members?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Covered Person" means (i) the individual executing this Agreement as Franchisee; (ii) each Owner, officer, director, manager, trustee, or general partner and Internal Manager of Franchisee and each Franchisee Affiliate if Franchisee is a Business entity; and (iii) the spouse, adult children, parents, collaterals, or siblings of the individuals included in (i) and (ii).
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of "Covered Person" does include certain family members. Specifically, the definition extends beyond the individual franchisee and any business entity involved, to include the spouse, adult children, parents, collaterals, or siblings of those individuals. This broad definition has significant implications for potential franchisees.
This means that these family members are also subject to certain obligations and restrictions outlined in the franchise agreement. For example, they may be restricted from involvement with competitive businesses or from disclosing confidential information related to the Boulder Designs franchise. This is intended to protect Boulder Designs' trade secrets and maintain a fair competitive environment within the franchise system.
Prospective franchisees should carefully consider the implications of this extended definition and discuss it with their family members. It is important to ensure that all parties understand the restrictions and obligations that come with being a "Covered Person" under the Boulder Designs franchise agreement. This understanding can help prevent potential conflicts or breaches of contract in the future.