What is the duration of the restriction on soliciting or providing services to clients previously serviced by the Franchised Business if the two-year restrictive period is deemed unenforceable for Boulder Designs?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If the two-year restrictive period would be unenforceable under applicable law as an unreasonable restraint of trade, then such restriction is modified to prohibit you and each Owner, as applicable, from soliciting or providing services, during said two-year period, to any client previously serviced by the Franchised Business.
This two-year restriction will be tolled during any period of my noncompliance.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, if the standard two-year non-compete restriction is deemed unenforceable under applicable law, a modified restriction takes effect. This modified restriction prohibits the franchisee and each owner from soliciting or providing services to any client previously serviced by the franchised Boulder Designs business during the same two-year period.
This means that even if a court finds the general non-compete clause too broad, the franchisee is still barred from actively pursuing or offering services to the Boulder Designs franchise's former customers for two years. This is designed to protect the established customer base of the franchise.
The two-year restriction is tolled during any period of noncompliance, meaning that if a franchisee violates the restriction, the clock stops, and the restriction is extended by the length of the violation. This provision aims to ensure that Boulder Designs franchisees adhere to the non-compete terms and do not attempt to circumvent them.