Is a Boulder Designs franchisee allowed to attempt to divert customers from the franchised business to a Competitive Business?

According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee is restricted from diverting customers to a competitor. Specifically, while an individual is an 'Owner' of the franchise, and for a two-year period after they cease to be an Owner, they are prohibited from diverting or attempting to divert any present or prospective customer of any Boulder Designs franchise to any competitor. They are also prohibited from doing anything to harm the goodwill associated with the Boulder Designs marks and the System.

This restriction is part of the Guaranty and Assumption of Obligations within the franchise agreement, highlighting the importance Boulder Designs places on protecting its customer base and brand reputation. This clause ensures that those with a vested interest in a Boulder Designs franchise, and for a reasonable period after their involvement ends, remain committed to not undermining the business by directing customers elsewhere.

For a prospective Boulder Designs franchisee, this means understanding that their commitment extends beyond the active period of ownership. It is a fairly standard practice in franchising to include non-compete and non-solicitation clauses to protect the brand and other franchisees within the system. This provision aims to prevent unfair competition and maintain the integrity of the Boulder Designs network.