What is a Boulder Designs franchisee prohibited from doing with Trade Secrets or other Confidential Information?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Individual shall not whether in person, in writing, through the Internet or online through Social Media sites and/or applications communicate or divulge to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any of the Company's Trade Secrets or Confidential Information.
Individual's obligations under paragraph 4(a) of this Agreement shall continue in effect after termination of Individual's relationship with Franchisee as an employee, agent, officer, director, executive, manager or member of Franchisee or a holder of a legal or beneficial interest in Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Individual shall (and Franchisee is entitled to) communicate Individual's obligations under this Agreement to any future customer or employer of Individual to the extent deemed necessary by Franchisee for protection of Franchisee's rights and obligations herein.
All ideas, concepts, know-how, techniques, advertising or materials concerning the System or developed, in whole or in part, using Trade Secrets or other Confidential Information, whether or not protectable intellectual property and whether created by or for Franchisee or its owners or employees, or other Covered
Persons, shall be promptly disclosed to Franchisor and shall be deemed the sole and exclusive property of Franchisor and works made-for-hire for Franchisor, and no compensation shall be due to Franchisee or its owners or employees therefore. Further, any advertising materials Franchise submits to Franchisor for review will become Franchisor's property, and Franchisor may use or distribute these materials in any manner Franchisor deems appropriate, without compensation to Franchisee. Franchisor has the right to incorporate such items into the System and/or disclose them to other franchisees and other persons or entities. To the extent any item does not qualify as a "work made for hire" for Franchisor, Franchisee shall assign, and by this Agreement, does assign, ownership of that item, and all related rights to that item, to Franchisor and shall sign any assignment or other document as Franchisor requests to assist Franchisor in obtaining or preserving intellectual property rights in the item. Franchisor shall disclose to Franchisee concepts and developments of other franchisees that are made part of the System. As Franchisor may request, Franchisee shall take all actions to assist Franchisor's efforts to obtain or maintain intellectual property rights in any item or process related to the System, whether developed by Franchisee or not.
Franchisee and Franchisee's employees do not have the right to utilize the Marks, any of the Trade Secrets, the Confidential Information, the common law copyrighted materials including the programs, photographs, program names, signage, promotional materials, Manual, training materials, Franchise Agreements, and/or any other documents, materials and items for the general ambiance and decor used in the operation of the System and the BOULDER DESIGNS Businesses on any Social Media sites and/or applications, even if made from Franchisee's personal Social Media account. Further, any representations from Franchisee or Franchisee's employees regarding Franchisee's profits or earnings made on any Social Media site and/or application, even if made from a personal Social Media account, is deemed a breach of Confidential Information under this Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees face several restrictions regarding the use and disclosure of trade secrets and confidential information. Franchisees are prohibited from communicating or divulging any of the company's trade secrets or confidential information to any other person, firm, association, or corporation, with the sole exception of the franchisee itself. This restriction applies whether the communication is in person, in writing, through the Internet, or online via social media.
This obligation extends beyond the termination of an individual's relationship with the franchisee, such as an employee or agent. The franchisee is entitled to communicate these obligations to any future customer or employer of the individual to protect the franchisee's rights. Moreover, all ideas, concepts, know-how, techniques, advertising, or materials concerning the Boulder Designs system, or developed using trade secrets or confidential information, are deemed the sole and exclusive property of Boulder Designs. Franchisees must promptly disclose such developments to Boulder Designs, and no compensation is due to the franchisee for these creations.
Boulder Designs also restricts the use of social media. Franchisees and their employees cannot use the company's trademarks, trade secrets, confidential information, or copyrighted materials on any social media sites or applications, even from personal accounts. Any representations made by franchisees or their employees regarding profits or earnings on social media are considered a breach of confidential information. These measures ensure that Boulder Designs maintains control over its proprietary information and brand reputation, preventing unauthorized use or disclosure that could harm the franchise system.