To what extent is Boulder Designs permitted by law to establish maximum and minimum prices for franchisees?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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We have the right to establish the maximum and minimum prices that you offer to your customers to extent permitted by law.
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
**This table lists certain important provisions of the franchise and related agreements.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs has the right to establish both maximum and minimum prices that franchisees can charge their customers, but this is only to the extent permitted by law. This means that Boulder Designs' ability to control pricing is subject to any applicable federal, state, or local laws that may restrict such practices.
For a prospective Boulder Designs franchisee, this implies that while Boulder Designs may set price ranges, these ranges must comply with legal standards. Antitrust laws, for example, may limit the franchisor's ability to enforce strict price controls, especially if it harms competition. Franchisees need to be aware of these potential legal limitations and how they might affect their pricing strategies.
It is important for franchisees to understand the specific laws governing price setting in their area and how they interact with the franchise agreement. Boulder Designs may also assist or require franchisees to establish maximum and minimum prices to the extent permitted by law. Franchisees should seek legal counsel to fully understand their rights and obligations regarding pricing and to ensure compliance with all applicable regulations.