For Boulder Designs, what is the duration of the non-competition agreement after the individual no longer has a relationship with the franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Individual agrees that for the period the Individual has a relationship with Franchisee and the period of two years after the Individual no longer has a relationship with Franchisee and has ceased engaging in the conduct stated below, Individual shall not, directly or indirectly, own an interest in, manage, operate, provide services to, carry on, be engaged in or take part in, or share in the earnings of any Competitive Business anywhere within (1) the greater of: (i) 25 miles of Franchisee's Approved Location as described in the Franchise Agreement; or (ii) the Territory, as detailed in Section 2.5 of the Franchise Agreement, also described as follows:
"Competitive Business" means any business that offers or provides (or grants franchises or licenses to others to operate a business that offers or provides) offers or sells engraved concrete signage or concrete landscaping products or other products or services that are the same as or similar to those sold by the Franchised Business or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or Boulder Designs' other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a franchise agreement with Franchisor, (b) any business operated by a publicly-held entity in which Franchisee owns less than a 5% legal or beneficial interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, an individual is subject to a non-competition agreement for a period of two years after they no longer have a relationship with the franchisee. During this time, the individual is restricted from owning an interest in, managing, operating, providing services to, or participating in any competitive business.
The non-competition clause applies within a specific geographic area, defined as the greater of 25 miles from the franchisee's approved location or the territory outlined in Section 2.5 of the Franchise Agreement. A "Competitive Business" is defined as any business offering or selling engraved concrete signage, concrete landscaping products, or similar products/services that could potentially utilize Boulder Designs' trade secrets or confidential information to the detriment of the franchisor, its affiliates, or other franchisees.
However, the non-competition agreement does not apply to businesses operated by the franchisee under a franchise agreement with Boulder Designs or any publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest. This non-compete agreement aims to protect Boulder Designs' market position and proprietary information by preventing former individuals associated with a franchisee from directly competing within a defined area for a specified period.