Does the Boulder Designs franchise agreement establish a partnership between the franchisor and franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor purchases or acquires such businesses within the Territory which are not franchised or licensed, Franchisor may, in its sole discretion: (i) offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a BOULDER DESIGNS Business; or (ii) offer Franchisee the opportunity to operate such business(s) in partnership with Franchisor (or an Affiliate) under the business(s) existing trade name or a different trade name.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise agreement does not establish a general partnership between the franchisor and franchisee. However, under specific circumstances, Boulder Designs may offer a franchisee the opportunity to operate an acquired business in partnership with the franchisor or an affiliate. This is not a standard element of the franchise agreement but rather a discretionary option the franchisor may exercise if it acquires a similar business within the franchisee's territory that is not already franchised or licensed.
This potential partnership opportunity is contingent on Boulder Designs acquiring a business similar to the franchised business within the franchisee's territory. If such an acquisition occurs, Boulder Designs has the option, but not the obligation, to offer the franchisee the chance to operate the acquired business in partnership with them or an affiliate. The terms and conditions of such a partnership would likely be separate from the standard franchise agreement.
It is important for prospective franchisees to understand that this partnership opportunity is not guaranteed and depends entirely on future acquisitions by Boulder Designs. The standard franchise agreement outlines the typical franchisor-franchisee relationship, which is not a partnership. Franchisees should inquire about the conditions under which such partnership opportunities may arise and what the typical terms of such partnerships would entail to fully understand the potential scope of their involvement with Boulder Designs.