factual

Does the definition of 'Covered Person' for Boulder Designs include trustees of the franchisee?

Boulder_Designs Franchise · 2025 FDD

Answer 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 trustees of the franchisee. Specifically, if the franchisee is a business entity, the definition extends to each owner, officer, director, manager, trustee, or general partner and Internal Manager of the franchisee.

This means that the obligations and restrictions placed on a "Covered Person" by the franchise agreement apply not only to the individual franchisee but also to these individuals holding positions of authority within a franchisee business entity. This is a common practice in franchising to ensure that all individuals with significant influence over the franchise operation are bound by the terms of the agreement.

For a prospective Boulder Designs franchisee, this definition is important because it clarifies who is subject to the various clauses within the franchise agreement, such as those related to confidentiality, non-competition, and intellectual property. If the franchisee is a business entity, the individuals serving as trustees must also comply with these obligations. This ensures that Boulder Designs can enforce the franchise agreement against a broader range of individuals associated with the franchise, providing greater protection for the brand and system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.