Does the Boulder Designs franchise agreement specify that a 'Covered Person' includes the individual executing the agreement as Franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
btained from a third party who has the right, without obligation of nondisclosure, to transfer or disclose such information;
- "Covered Person" means (i) the individual executing this Agreement as Franchisee; (ii) each Owner, officer, director, manager, trustee, or general partner and Internal Manager of Franchisee and each Franchisee Affiliate if Franchisee is a Busines
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the definition of a 'Covered Person' does indeed include the individual who is executing the agreement as the franchisee. This is explicitly stated in Item 22, which defines various terms used within the franchise agreement.
This definition is important because the franchise agreement places certain obligations and restrictions on 'Covered Persons.' These restrictions often relate to non-competition, confidentiality, and intellectual property. By including the franchisee in the definition of 'Covered Person,' Boulder Designs ensures that these obligations directly apply to the individual operating the franchise.
For a prospective Boulder Designs franchisee, this means that they will be personally bound by the terms of the franchise agreement, particularly those concerning competition and confidentiality, not only during the term of the agreement but also potentially after its termination or expiration. They should carefully review the sections of the franchise agreement that refer to 'Covered Persons' to fully understand the scope of their obligations and restrictions.