Does the definition of 'Covered Person' for Boulder Designs include collaterals of the franchisee?
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 collaterals of the franchisee. Specifically, the FDD states that a Covered Person includes the franchisee, owners/officers/directors/managers/trustees/general partners/Internal Managers 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 broadens the scope of individuals who may be subject to certain obligations or restrictions under the Franchise Agreement. For example, these individuals could be bound by non-compete clauses or confidentiality agreements.
Prospective Boulder Designs franchisees should carefully consider the implications of this broad definition and how it might affect their family members or other related parties. It is advisable to seek legal counsel to fully understand the obligations and restrictions that may apply to Covered Persons under the Franchise Agreement.