Is a Boulder Designs franchisee prohibited from diverting customers to a competitive business?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
limited liability company or other business entity:
- i. own an interest in, manage, operate or provide services to any Competitive Business located or operating (a) within 25 miles of the Approved Location or within the Territory (whichever is greater), and (b) within 25 miles of the location of any other BOULDER DESIGNS Business in existence at the time of termination or expiration; or
- ii. solicit or otherwise attempt to induce or influence any customer, employee or other business associate of Franchisor, its Affiliate(s) or any other franchisee to terminate or modify his, her or its business relationship with Franchisor, its Affiliate(s) or any other franchisee, by direct or indirect inducement or otherwise.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees face restrictions regarding unfair competition and soliciting customers for other businesses. Specifically, a Boulder Designs franchisee is prohibited from soliciting or attempting to influence any customer of Boulder Designs, its affiliates, or any other franchisee to terminate or modify their business relationship. This includes direct or indirect inducement.
Additionally, franchisees agree not to refer prospective customers to any former franchisee. This prevents current franchisees from directing business opportunities to individuals who are no longer part of the Boulder Designs system.
Furthermore, if a franchisee operates any other business, they are prohibited from using any imitation of the Boulder Designs marks that could cause confusion or dilute the franchisor's rights in those marks. This ensures that franchisees do not leverage the Boulder Designs brand to benefit other ventures. These measures collectively aim to protect the Boulder Designs brand and prevent unfair competition within and outside the franchise system.