What must a Boulder Designs franchisee do regarding stock certificates or ownership interest certificates if the franchisee is a business entity?

According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must ensure that each of its stock certificates or other ownership interest certificates are conspicuously endorsed. This endorsement must be a statement, in a form satisfactory to Boulder Designs, indicating that the ownership interest is held subject to all restrictions imposed on transfers and assignments by the Franchise Agreement. This requirement must be met before opening the franchised business.

This provision ensures that any transfer of ownership within the franchisee's business entity remains subject to the franchisor's approval and the terms of the franchise agreement. It prevents unauthorized transfers of the franchise to individuals or entities not approved by Boulder Designs. This is a common practice in franchising to maintain control over who operates under the brand and to ensure compliance with franchise terms.

For a prospective Boulder Designs franchisee, this means that if they choose to operate the franchise through a corporation, LLC, or other business entity, they will need to work with their legal counsel to properly endorse the ownership certificates. The specific language and format of the endorsement must be approved by Boulder Designs. Failure to comply with this requirement could delay the opening of the franchise or even result in a breach of the franchise agreement.