Does the definition of 'Customer' for Boulder Designs include any person that purchases services from the franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Covered Person shall mean an individual who falls within the identified categories where on the Effective Date or later during the Term;
- "Customer(s)" means any person or entity that purchases or receives good or services from Franchisee, as applicable;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, a 'Customer' is defined as any person or entity that purchases or receives goods or services from the franchisee. This definition is part of the franchise agreement and applies throughout the agreement's term. This definition is important because the franchise agreement contains various clauses that affect the franchisee's dealings with customers, such as restrictions on soliciting customers of Boulder Designs after termination of the franchise agreement.
This definition is fairly standard in franchise agreements. It establishes the scope of who Boulder Designs considers to be a customer of the franchisee, which can have implications for customer data usage, marketing efforts, and non-compete obligations.
Prospective franchisees should understand that this definition is broad and includes any person or entity that receives goods or services, regardless of the nature of the transaction. This could include one-time purchasers, repeat customers, or even those who receive complimentary services. Franchisees should also note that the definition includes both persons and entities, meaning that businesses can also be considered customers.