What is the definition of 'Franchised Business' for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ncludes sale of unfinished or raw boulders to Customers.
ARTICLE 2 - GRANT OF FRANCHISE
Section 2.1 Grant of Franchise
Franchisor hereby grants to Franchisee, and Franchisee undertakes and accepts, upon the terms and conditions herein contained, a revocable, limited license to operate one BOULDER DESIGNS Business using the System and Marks.
Section 2.2 Approved Location
Subject to all of the terms and conditions herein, Franchisor grants to Franchisee the right and license to operate a Franchised Business using the System and the Marks at an approved location ("Approved Location") and solely within the Territory. Franchisee hereby accepts such right and license subject to such terms and conditions and undertakes to operate the Franchised Business and to use the System and Marks solely in connection therewith. If the Approved Location of the Franchised Business is not determined as of the Effective Date, then Franchisee shall have up to 30 days to propose a location to Franchisor for approval. If Franchisor does not deny Franchisee's proposed location within 30 calendar days, the location shall be deemed approved. If Franchisee receives a denial from Franchisor, Franchisee must submit a new location until approved. When the Approved Location is determined, its description shall be identified on the Key Terms Page. Franchisee must only operate the approved Boulder Designs Business from the approved location and no other business.
Section 2.3 Sub-franchising/Agents
Franchisee shall not sublicense the use of the System or Marks to any person or entity to perform any part of Franchisee's rights or obligations licensed herein, or to grant any person or entity the right to act as Franchisee's agent to perform any part of Franchisee's rights or obligations herein.
Section 2.4 The Territory
If the Key Terms Page identifies the Territory as a "Separate Territory" then, provided Franchisee is not in default under any of the terms hereof, Franchisor will not grant anyone by Franchisee the right to operate a BOULDER DESIGNS Business in the Territory subject to reserved rights by Franchisor pursuant to this Section 2.4 of this Agreement.
If the Key Terms Page identifies the Territory as a "Shared Territory," then Franchisor may itself operate, or grant others the right to operate, one or more BOULDER DESIGNS Businesses in the Territory. If this Agreement initially grants a "Separate Territory," Franchisor has the right to convert the territory to a "Shared Territory," by delivering to Franchisee written notice of the change. A Separate Territory may be converted to a Shared Territory should the Franchisee fail to meet a minimum performance target or a minimum gross revenue requirement (which will not exceed $30,000 annually). If the Territory is converted to a Shared Territory we anticipate the Shared Territory will consist of a population of greater than 450,000.
Franchisee's business activities are confined to retail transactions only. Franchisee may not enter into any Wholesale Transactions in Franchisee's Territory without first obtaining Franchisor's written consent. Franchisee acknowledges and agrees that conducting Wholesale Transactions without Franchisor's prior approval is a material breach of this Franchise Agreement, for which Franchisor may terminate the Franchise Agreement for cause without an opportunity to cure.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee is granted a revocable, limited license to operate one Boulder Designs business using the System and Marks. This operation must occur at an approved location, and the franchisee is only authorized to conduct the Boulder Designs business from this specific location.
The FDD specifies that the franchisee cannot sublicense the use of the System or Marks to any other person or entity, nor can they grant anyone the right to act as their agent in performing their obligations. This means the franchisee must directly manage and control the business operations.
To maintain the integrity of the Boulder Designs brand, the franchisor retains the right to inspect the franchised business and its approved location at any reasonable time. This includes observing how the franchisee renders services, conducts activities, and manages operations. The franchisor can also inspect facilities, equipment, products, and documents to ensure compliance with quality control and performance standards. This ensures that each Boulder Designs location adheres to the franchisor's standards, protecting the brand's reputation and goodwill.