What is the definition of a 'Former Franchisee' in the context of Boulder Designs?

According to Boulder Designs' 2025 Franchise Disclosure Document, a 'Former Franchisee' is defined as any Boulder Designs franchisee whose franchise agreement has been terminated or has naturally expired under the terms of the agreement. This definition is important because the franchise agreement places specific restrictions on franchisees regarding their interactions and dealings with former franchisees.

Boulder Designs franchisees are prohibited from sharing confidential business information, advertising materials, or any non-public information about the Boulder Designs business or system with former franchisees. They are also restricted from referring prospective customers to former franchisees or assisting them in learning about franchisee meetings.

Furthermore, if a franchisee observes a former franchisee using Boulder Designs' proprietary marks or operating from premises that still display the brand's identity, they are obligated to report this to Boulder Designs. In general, franchisees are expected to avoid dealings with former franchisees that they would not have with someone who had never been a Boulder Designs franchisee. These provisions apply as soon as a franchisee receives notice of the expiration or termination of another franchisee's agreement.

These restrictions are put in place to protect Boulder Designs' brand, reputation, and competitive advantage. By limiting interactions with former franchisees, Boulder Designs aims to prevent the potential misuse of confidential information and ensure fair competition within the system. Prospective franchisees should be aware of these obligations and understand the implications for their business operations and relationships within the Boulder Designs network.