Does the Boulder Designs franchise agreement specify how the Franchisor approves a location?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
n good standing and shall remain in good standing for the duration of the Renewal Term.
The Initial Term and any Renewal Term collectively may be referred to herein as the "Term" of this Agreement.
ARTICLE 5 - APPROVED LOCATION
Section 5.1 Selection of Site
Franchisee may choose to operate the Franchised Business out of a private residence or commercial business office, both of which must be located in the Franchisee's Territory as defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. In the event Franchisee chooses not to operate the Franchised Business out of the Franchisee's owners' home, Franchisee shall promptly select a site for the Franchised Business and shall notify Franchisor of such selection by submitting Franchisor's Site Selection form with all supporting data and attachments. If Franchisor approves such selection, the site shall be designated as the Approved Location. If Franchisor does not approve of such selection, Franchisee shall select and notify Franchisor of new sites until Franchisor approves a site for the Franchised Business. Franchisor shall provide Franchisee with general guidelines to assist Franchisee in selecting a site suitable for the Approved Location. Franchisor has the right to approve or disapprove a proposed location based on such factors as it deems appropriate, including, without limitation: the condition of the premises; demographics of the surrounding area; proximity to other BOULDER DESIGNS Businesses and competitors; lease requirements; and overall suitability. Franchisor shall notify Franchisee of its approval or disapproval of a proposed site within 30 calendar days after Franchisor receives all information submitted from Franchisee. Franchisor will not unreasonably withhold approval; however, if Franchisor and Franchisee cannot agree on a location for the Franchised Business, Franchisor may in its sole discretion allow more time for site selection or terminate the Franchise Agreement. If the Franchise Agreement is terminated Franchisee is not entitled to any refund of the initial franchise fee or other deposits paid to Franchisor. If the Franchisor fails to respond in writing to the Selection of Site request within 45 calendar days, the site is deemed approved if the Site is in the Franchisee's Territory. If operating from Franchisee's home the site will be deemed automatically approved upon submission to Franchisor, provided the site is located within the Franchisee's Territory.
Franchisor does not represent that it, or any of its Affiliates, owners or employees, have special expertise in selecting sites. Neither Franchisor's assistance nor its approval is intended to indicate or indicates that the Franchised Business will be profitable or successful at the Approved Location. Franchisee is solely responsible for identifying the Approved Location and assumes all risks with respect to the selection of the Approved Location.
Section 5.2 Lease of Approved Location
If applicable, after the designation of the Approved Location (and if the site is to be leased or purchased), Franchisee shall execute a lease for, or a binding agreement to purchase, the Approved Location, the terms of which must have been previously approved by Franchisor in writing.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchise agreement outlines the location approval process. The franchisee can operate from a private residence or commercial business office within their designated territory. If not operating from a home office, the franchisee must submit a Site Selection form to Boulder Designs with supporting data. Boulder Designs will provide general guidelines to assist in site selection.
Boulder Designs has the right to approve or disapprove a proposed location based on factors they deem appropriate, including the condition of the premises, demographics, proximity to other Boulder Designs businesses and competitors, lease requirements, and overall suitability. Boulder Designs is required to notify the franchisee of their decision within 30 calendar days of receiving all required information. While Boulder Designs will not unreasonably withhold approval, they may terminate the Franchise Agreement if an agreement on a location cannot be reached. In the event of termination, the franchisee will not receive a refund of the initial franchise fee or other deposits.
If Boulder Designs fails to respond in writing to the site selection request within 45 calendar days and the site is within the franchisee's territory, the site is considered approved. If the franchisee operates from their home, the site is automatically approved upon submission, provided it is within the designated territory. The franchisee is prohibited from using the approved location for any purpose other than operating a Boulder Designs business in compliance with the agreement and manual. The franchisee cannot relocate without prior written consent from Boulder Designs and must adhere to the Americans With Disabilities Act (ADA) requirements for the approved location.