Does the Boulder Designs franchise agreement include a Non-Disclosure and Non-Competition Agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
In furtherance of this Section, Franchisor has the right to require officers, managers, and partners along with certain individuals and any Covered Person to execute a standard form non-disclosure or noncompetition agreements in a form the same as the Non-Disclosure and Non-Competition Agreement attached as Exhibit 2.
Section 17.3 Unfair Competition
If Franchisee operates any other business, Franchisee shall not use any reproduction, counterfeit, copy or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, that is likely to cause confusion, mistake or deception, or that is likely to dilute Franchisor's rights in the Marks. Franchisee shall not utilize any designation of origin, description or representation that falsely suggests or represents an association or connection with Franchisor. If Franchisor elects not to receive an assignment or sublease of the Approved Location, Franchisee shall make such modifications or alterations to the Approved Location (including changing telephone numbers) immediately upon termination or expiration of this Agreement as may be necessary to prevent any association between Franchisor or the System and any business subsequently operated by Franchisee or others at the Approved Location. Franchisee shall make such specific additional changes to the Approved Location as Franchisor may reasonably request for that purpose including, without limitation, removal of all physical and structural
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise agreement does include both a Non-Disclosure and Non-Competition Agreement. Boulder Designs requires officers, managers, partners, certain individuals, and any Covered Person to execute a standard form non-disclosure or noncompetition agreement, which is included as an exhibit in the FDD.
The Non-Disclosure Agreement ensures that franchisees and related individuals protect Boulder Designs' confidential information and trade secrets. This includes technical and non-technical information related to the Boulder Designs business that is not publicly known. Franchisees and related individuals are prohibited from disclosing this information to any other party or using it to compete against Boulder Designs. This obligation extends even after the individual's relationship with the franchisee ends.
The Non-Competition Agreement restricts individuals from engaging in any Competitive Business during their relationship with the franchisee and for two years after. A Competitive Business is defined as any business that offers similar products or services to Boulder Designs or could utilize the company's trade secrets. The non-compete area is the greater of 25 miles from the franchisee's approved location or the territory as defined in the Franchise Agreement. This agreement aims to protect Boulder Designs' market share and prevent franchisees or related parties from using the franchisor's knowledge to unfairly compete.