Where in the Boulder Designs franchise agreement is 'best efforts' defined?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall use its best efforts to promote and increase the sales and recognition of services offered through the Franchised Business. Franchisee shall require all of Franchisee's independent contractors, employees, Internal Managers, officers, agents and representatives to use best efforts to enhance and
improve the System and the sales of all services and products provided as part of the System. Best efforts are defined as set forth in Section 2.6 hereof. Franchisor will have the sole discretion to issue a Notice of Termination with 60 days right to cure or in the alternative, Franchisee may lose territorial exclusivity.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of 'best efforts' is found in Section 2.6 of the franchise agreement. The franchisee is obligated to use their best efforts to promote and increase sales and recognition of services offered through the franchised business. This obligation extends to the franchisee's independent contractors, employees, internal managers, officers, agents, and representatives, who must also use their best efforts to enhance and improve the Boulder Designs system and sales of all services and products.
Failure to meet this 'best efforts' standard can lead to significant consequences for a Boulder Designs franchisee. The franchisor has the discretion to issue a Notice of Termination, giving the franchisee 60 days to correct the issue. Alternatively, the franchisee may lose territorial exclusivity, which could severely impact their business operations and potential revenue.
This clause highlights the importance Boulder Designs places on active promotion and dedication to the brand. Prospective franchisees should carefully review Section 2.6 of the franchise agreement to fully understand what constitutes 'best efforts' in the context of their specific franchise agreement. Understanding this definition is crucial to avoid potential disputes or penalties related to performance expectations.