What exhibit outlines the Covenant of Non-Competition that a Boulder Designs franchisee must comply with after termination or expiration?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
In furtherance of this Section, Franchisor has the right to require officers, managers, and partners along with certain individuals and any Covered Person to execute a standard form non-disclosure or noncompetition agreements in a form the same as the Non-Disclosure and Non-Competition Agreement attached as Exhibit 2.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Non-Disclosure and Non-Competition Agreement is attached as Exhibit 2. This agreement likely contains the specific terms and conditions of the covenant of non-competition that a franchisee must adhere to after the termination or expiration of their franchise agreement.
This exhibit is crucial for prospective franchisees to review carefully. It outlines the restrictions on their ability to engage in similar businesses or activities within a specified geographic area and time frame after they are no longer a Boulder Designs franchisee. These restrictions are designed to protect Boulder Designs' trade secrets, customer relationships, and overall market position.
Understanding the terms of the non-competition agreement is essential for franchisees to assess the potential impact on their future business opportunities. They should carefully consider the geographic scope and duration of the restrictions, as well as the types of activities that are prohibited. It is advisable to seek legal counsel to fully understand the implications of this agreement before signing the franchise agreement.