Does the definition of 'Former Franchisee' for Boulder Designs include franchisees that have been terminated?

According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of "Former Franchisee" includes franchisees whose agreements have been terminated. The FDD defines a "Former Franchisee" as any Boulder Designs franchisee(s) that have been terminated or whose Franchise Agreements have expired naturally under the terms of those Franchise Agreements.

This definition is important because the franchise agreement places certain restrictions and obligations on franchisees even after they are no longer part of the Boulder Designs system. These obligations are designed to protect the brand's reputation, trade secrets, and customer relationships. For example, a former franchisee is restricted from using confidential information about the Boulder Designs business or system that is not available to the public.

Additionally, the franchise agreement stipulates that franchisees acknowledge that former franchisees could unfairly compete with Boulder Designs, current franchisees, and the franchisor. Therefore, franchisees agree not to sell, loan, or transfer confidential business information to any former franchisee. They also agree not to refer prospective customers to former franchisees or assist them in learning about franchisee meetings. These measures aim to prevent unfair competition and protect the interests of the Boulder Designs franchise system.