Does the definition of 'Franchised Business' for Boulder Designs specify that it must be established and operated by the franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchised Business shall, at all times, be under the direct supervision of Franchisee or an Internal Manager who has successfully completed Franchisor's training program. The Internal Manager shall devote sufficient efforts to the management of the day-to-day operations of the Franchised Business. Franchisee shall keep Franchisor informed, in writing, at all times of the identity of its current Internal Manager. Franchisee must not engage in any business or other activities that will conflict with its obligations under this Agreement.
Section 13.4 Days of Operation
For those Franchisee's that choose to open a brick and mortar location with a public showroom (commonly known as a store front), Franchisee shall keep the Franchised Business open for business at a minimum, during normal business hours and on the days specified in the Manual or as we may specify.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise agreement stipulates that the Franchised Business must be under the direct supervision of the Franchisee or an Internal Manager who has successfully completed Boulder Designs' training program. If the franchisee is an individual, the Internal Manager shall be the Franchisee.
This means that while the franchisee doesn't necessarily have to be involved in the day-to-day operations, they must ensure the business is directly supervised by themselves or a trained and approved Internal Manager. This Internal Manager must devote sufficient effort to the daily management of the Franchised Business.
This requirement ensures that Boulder Designs maintains control over the quality and standards of its Franchised Businesses, even if the franchisee chooses to delegate daily management. However, the franchisee cannot completely remove themselves from the business, as they are ultimately responsible for its supervision and must keep Boulder Designs informed of the identity of the current Internal Manager.