Does the Boulder Designs franchisee have to participate in Franchisor's current N simultaneously with the execution of this Agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, simultaneously with the execution of this Agreement, Franchisor and Franchisee are entering into a franchise agreement (the "Franchise Agreement") for the operation of a Boulder Designs franchise;
WHEREAS, pursuant to the Franchise Agreement, Franchisee has an obligation to participate in any National Accounts program by the Franchisor;
WHEREAS, currently Franchisor has implemented a certain headstone program, upon which franchisor will generate and provide Franchisee with leads for creation of a headstone in Franchisee's Territory (as the term is defined in the Franchise Agreement), in lieu of certain fees charged by the Franchisor; and
WHEREAS, the Franchisor desires to grant you the right to participate, and you desire to patriciate in the national headstone program, pursuant to the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, franchisees are obligated to participate in any National Accounts program implemented by the franchisor. Currently, Boulder Designs has a headstone program in place. Under this program, the franchisor generates and provides franchisees with leads for creating headstones within their designated territory, potentially in lieu of certain fees.
Simultaneously with the execution of the Franchise Agreement, Boulder Designs and the franchisee enter into an agreement where the franchisor grants the franchisee the right to participate in the national headstone program, and the franchisee agrees to participate, according to the terms and conditions outlined in the agreement. This participation is part of the broader agreement and is considered in exchange for the mutual promises and considerations detailed within the agreement.
This means that as a Boulder Designs franchisee, you are expected to engage in any National Accounts programs the franchisor initiates, including the current headstone program. This participation is tied to the franchise agreement and involves servicing national accounts under the terms negotiated for those accounts. However, Boulder Designs retains the right to manage these projects and may offer them to other franchisees or qualified third parties if they determine the franchisee is not capable of handling the account or if the service volume exceeds current capacity.