Is a Boulder Designs franchisee prohibited from soliciting or hiring employees of other Boulder Designs franchisees?

According to Boulder Designs's 2025 Franchise Disclosure Document, a franchisee is generally not prohibited from soliciting or hiring employees of other Boulder Designs franchisees. However, if a franchisee hires an employee from another Boulder Designs franchise who has attended Boulder Designs's training within 12 months of the hire date, the hiring franchisee must compensate the other franchisee. This compensation includes the then-current training fee of Boulder Designs, plus the other franchisee's actual costs for sending the employee to training. These costs encompass travel, lodging, wages, and food expenses. This policy aims to balance the franchisees' ability to staff their businesses with the need to compensate franchisees who have invested in training their employees.

This clause has significant implications for franchisees. It allows franchisees to recruit experienced staff from within the Boulder Designs system, potentially reducing their own training costs and onboarding time. However, it also creates a financial obligation if the new hire has recently undergone training, which could impact the hiring franchisee's budget. The cost of training and related expenses can vary, so franchisees need to factor this into their hiring decisions.

For prospective franchisees, it's important to understand the potential costs associated with hiring employees from other franchises within the Boulder Designs system. They should inquire about the current training fees and typical expenses related to employee training to accurately assess these potential costs. Additionally, franchisees should maintain clear records of any training their employees receive to ensure they can accurately calculate compensation if another franchisee hires one of their trained employees. This policy is not uncommon in franchising, as it seeks to protect the investment franchisees make in their staff while still allowing for employee mobility within the system.