What is the duration of the non-compete restriction for a Boulder Designs owner after they cease to be an owner?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
While I am an "Owner" of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), I will not:
6.1 divert or attempt to divert any present or prospective customer of any BOULDER DESIGNS franchises to any competitor or do anything to harm the goodwill associated with the Marks and the System;
6.2 employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if you are an owner of a Boulder Designs franchise, you are subject to a non-compete agreement for two years after you cease to be an owner, or two years after the termination or expiration of the Franchise Agreement, whichever occurs first. This restriction applies to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks.
This non-compete restricts you from actions such as diverting customers, employing or soliciting employees of Boulder Designs, or engaging in competitive businesses. Specifically, you cannot own, maintain, advise, operate, be employed by, make loans to, invest in, provide assistance to, or have any interest in any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise.
However, the FDD states that if the two-year restrictive period is deemed unenforceable under applicable law as an unreasonable restraint of trade, the restriction is modified. In this case, it would prohibit you from soliciting or providing services, during the two-year period, to any client previously serviced by the Franchised Business. The two-year restriction will also be tolled during any period of noncompliance, effectively extending the restriction if you violate it.