Is a Boulder Designs franchisee allowed to operate any business other than the approved Boulder Designs Business from the approved location?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
conditions herein contained, a revocable, limited license to operate one BOULDER DESIGNS Business using the System and Marks.
Section 2.2 Approved Location
Subject to all of the terms and conditions herein, Franchisor grants to Franchisee the right and license to operate a Franchised Business using the System and the Marks at an approved location ("Approved Location") and solely within the Territory. Franchisee hereby accepts such right and license subject to such terms and conditions and undertakes to operate the Franchised Business and to use the System and Marks solely in connection therewith. If the Approved Location of the Franchised Business is not determined as of the Effective Date, then Franchisee shall have up to 30 days to propose a location to Franchisor for approval. If Franchisor does not deny Franchisee's proposed location within 30 calendar days, the location shall be deemed approved. If Franchisee receives a denial from Franchisor, Franchisee must submit a new location until approved. When the Approved Location is determined, its description shall be identified on the Key Terms Page. Franchisee must only operate the approved Boulder Designs Business from the approved location and no other business.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee is explicitly restricted from operating any business other than the approved Boulder Designs business from the approved location. The franchise agreement grants a limited license to operate a Boulder Designs business at an approved location and solely within the designated territory.
Boulder Designs requires that the franchisee must only operate the approved Boulder Designs Business from the approved location and no other business. Furthermore, the franchisee is prohibited from using the approved location for any purpose other than the operation of a Boulder Designs business in full compliance with the franchise agreement and the manual.
These restrictions are typical in franchising to maintain brand consistency and prevent conflicts of interest. Boulder Designs wants to ensure that the franchisee's focus remains solely on developing and managing the Boulder Designs business according to the franchisor's standards and system. This also protects the brand's image and reputation by preventing the franchisee from associating it with other ventures that may not align with Boulder Designs' quality and service standards.
A prospective Boulder Designs franchisee should carefully consider these restrictions and ensure they are comfortable dedicating their full attention and resources to the Boulder Designs business at the approved location.