Does the Boulder Designs Franchise Agreement require the franchisee to confirm that signing the agreement does not violate any other agreements they are a part of?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents its execution of this Agreement will not violate any other agreement or commitment to which Franchisee or any Owner is a party.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Franchise Agreement includes a representation by the franchisee that their execution of the agreement does not violate any other existing agreements or commitments. Specifically, Section 24.6 of the agreement requires the franchisee to acknowledge that entering into the Boulder Designs Franchise Agreement will not breach any other agreements they or any owner are party to.
This provision is a standard clause in franchise agreements. It aims to protect Boulder Designs from potential legal issues that could arise if a franchisee is bound by conflicting obligations. For example, a franchisee might have a non-compete agreement with a previous employer that could be violated by operating a Boulder Designs franchise.
By including this representation, Boulder Designs places the onus on the franchisee to ensure they are free to enter into the franchise agreement. A prospective franchisee should carefully review all existing contracts and commitments before signing the Boulder Designs Franchise Agreement to avoid potential legal conflicts. It may be prudent to seek legal counsel to review these documents and advise on any potential conflicts.