Does the definition of 'Covered Person' for a Boulder Designs franchise include the spouse of an officer of the franchisee?

According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of "Covered Person" does include the spouse of an officer of the franchisee. Specifically, the FDD states that a "Covered Person" includes the individual executing the agreement as the franchisee, each owner, officer, director, manager, trustee, or general partner and Internal Manager of the franchisee, and the spouse, adult children, parents, collaterals, or siblings of the individuals included in the previous categories.

This definition is important because it extends certain obligations and restrictions outlined in the franchise agreement beyond just the franchisee themselves. For example, "Covered Persons" are subject to confidentiality obligations and non-compete restrictions during the term of the agreement. This means that the spouse of an officer of a Boulder Designs franchisee could be restricted from involvement in competitive businesses or from disclosing confidential information related to Boulder Designs.

Prospective franchisees should carefully consider the implications of this broad definition, as it affects not only themselves but also their immediate family members and business associates. It is essential to understand the restrictions placed on "Covered Persons" to avoid any potential breaches of the franchise agreement. Franchisees should discuss this definition with their legal counsel to fully understand their obligations and the obligations of those considered "Covered Persons" under the agreement.