Where must disputes with Boulder Designs be mediated?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. Integration/merger clause | Section 22.6 | Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 23.7 | Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, mediation for disputes (excluding actions for injunctive relief, specific performance, or those related to Marks, Trade Secrets, or Confidential Information) must occur in McLennan County, Texas. This is detailed in Section 23.7 of the Franchise Agreement. However, this is subject to state law, meaning that certain state laws may override this provision, as seen in the addenda for Illinois, where the Franchise Disclosure Act stipulates that any provision designating venue outside of Illinois is void with respect to any cause of action that is otherwise enforceable in Illinois.
For a prospective Boulder Designs franchisee, this means that if a dispute arises that isn't related to injunctive relief, specific performance, or intellectual property, they will likely need to travel to McLennan County, Texas for mediation. This could involve significant travel expenses and time, depending on where the franchisee's business is located.
However, the FDD also notes that state laws may take precedence over certain provisions of the franchise agreement. For example, the Illinois addendum indicates that the venue selection may not be enforceable in Illinois. Therefore, franchisees should be aware of the specific laws in their state that may affect dispute resolution. It is important to consult with a legal professional to understand how these provisions and state laws apply to their specific situation.
It is fairly common in franchising for the franchise agreement to specify a particular location for dispute resolution, often the location of the franchisor's headquarters. This clause aims to provide predictability and consistency for Boulder Designs in managing legal matters. However, franchisees should carefully consider the potential costs and inconveniences associated with this requirement before investing in a Boulder Designs franchise.