Does the Boulder Designs franchise agreement define what constitutes 'control' in the context of an 'Affiliate'?

According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise agreement does define what constitutes 'control' in the context of an 'Affiliate'. The agreement specifies that an "Affiliate" means any business entity that controls, is controlled by, or is under common control with the Franchisor.

This definition is important for prospective franchisees because it clarifies the scope of relationships that Boulder Designs considers to be affiliated. This can have implications for various aspects of the franchise agreement, including non-compete clauses, approved supplier requirements, and other operational matters. Understanding the definition of "Affiliate" helps franchisees recognize potential conflicts of interest or restrictions that may arise due to relationships between Boulder Designs and other business entities.

For example, the definition of 'Affiliate' is referenced in the non-competition agreement that an individual who has a relationship with a franchisee must sign. This agreement states that the individual cannot be involved with a Competitive Business that could use Trade Secrets to the disadvantage of Boulder Designs, its Affiliates, or other franchisees. The agreement defines 'Affiliate' in this context as any business entity that controls, is controlled by, or is under common control with the Individual.