Following the death or incapacity of a Boulder Designs franchisee, what happens if the representative does not transfer the interest within the specified timeframe?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee shall not, without prior written consent of Franchisor, place in, on or upon the location of the Franchised Business, or in any communication media, any form of advertising relating to the sale of the Franchised Business or the rights granted herein. Franchisor will not withhold consent for "For-Sale Advertising" unreasonably upon written notice by Franchisee.
Section 18.6 Transfer by Death or Incapacity
Upon the death or incapacity (as determined by a court of competent jurisdiction) of any individual franchisee or any Owner of a Business Entity franchisee, the appropriate representative of such person (whether administrator, personal representative or trustee) will, within a reasonable time not exceeding six months following such event, transfer such individual's interest in the Franchised Business or any Owner's interest in Franchisee to a third party approved by Franchisor or Franchisor shall have the right to terminate this Agreement. Such transfers, including transfers by will or inheritance shall be subject to the conditions for assignments and transfers contained in this Agreement unless prohibited by the choice of law provision of the state where Franchisee resided, with such choice of law provision being applicable only for this Section 18.6 During such six-month period, the Franchised Business must remain at all times under the primary management of an Internal Manager who otherwise meets Franchisor's management qualifications.
Following the death or incapacity of an individual franchisee or the Owner o
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee or an owner of a business entity franchisee, their representative has a reasonable time, not exceeding six months, to transfer the interest in the franchised business to a third party approved by Boulder Designs. If the transfer does not occur within this timeframe, Boulder Designs has the right to terminate the Franchise Agreement.
During this six-month period, the Boulder Designs business must remain under the primary management of an Internal Manager who meets Boulder Designs' management qualifications. This ensures the continued operation of the franchise during the transition.
Additionally, Boulder Designs has the option, but not the obligation, to assume operation of the franchised business until the interest is transferred. If Boulder Designs chooses to operate the business, they may charge a management fee, which is currently $500 per day plus reasonable expenses, as detailed in the Manual. This fee covers the costs and efforts associated with managing the business during the interim period.