What should a Boulder Designs franchisee do if a general release is prohibited by law during a transfer?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Enforceability. If any one or more of the provisions contained in this Agreement are, for any reason, held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision herein, and this Agreement will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein and such invalid, illegal or unenforceable provision shall be revised so as to be valid, legal and enforceable.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
The 2025 Boulder Designs Franchise Disclosure Document does not explicitly state what actions a franchisee should take if a general release is prohibited by law during a transfer. However, the FDD does address the enforceability of the agreement in general.
According to Section 6 regarding enforceability, if any provision within the agreement is deemed invalid, illegal, or unenforceable, it will not impact the remaining provisions. The agreement will be interpreted as if the invalid provision was never included, and the provision should be revised to ensure it is valid, legal, and enforceable. This suggests that if a general release is prohibited by law, that specific clause would be modified or removed without nullifying the entire agreement.
Prospective Boulder Designs franchisees should seek legal counsel to understand the implications of such a situation in their specific jurisdiction. It would also be prudent to discuss this scenario directly with Boulder Designs to understand their standard procedure when a general release is legally prohibited during a franchise transfer. This ensures both parties are aware of how to proceed in compliance with local laws while still maintaining the integrity of the franchise agreement.