Can a Boulder Designs franchisee solicit or advertise outside of their territory?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
You may neither directly solicit nor advertise outside of the Territory, including on the Internet, without our prior written consent.
You may accept orders outside your Territory with certain restrictions. If such product request is received outside of your Territory, retails less than $2,000, and that Territory is not owned/operated by another franchisee, you may retain all gross revenue associated with the sale and production provided such revenue will be subject to fees due in the franchise agreement. If the product retails over $2,000, and that Territory is not owned/operated by another franchisee, then you must pay 100% of the retail price to the Franchisor.
If you accept clients outside of your Territory, and we award the area containing those clients to another franchisee, you must relinquish those clients outside of your Territory to the new franchisee. If you accept clients outside of your Territory, and if that area is another franchisee's territory, you must pay us and the franchisee the Encroachment Fee of $1,000 per job performed and 100% of revenue generated from such sale to the franchisee whose territory in which the sale was made. We do not grant you a right of first refusal or any other rights for orders originating in areas that are not in your Territory, and while we do not require it, we encourage you to buy additional Territories adjacent to your Territory if you want to secure those clients.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees are generally prohibited from directly soliciting or advertising outside of their designated territory without prior written consent from Boulder Designs, including online.
However, a Boulder Designs franchisee may accept orders from outside their territory under certain conditions. If a product request originates outside the franchisee's territory, retails for less than $2,000, and the territory is not owned or operated by another franchisee, the franchisee may retain all gross revenue, subject to standard franchise fees. If the product retails for over $2,000 and the territory is unowned/unoperated, the franchisee must remit 100% of the retail price to Boulder Designs.
If a Boulder Designs franchisee accepts clients from an area that is later awarded to a new franchisee, the original franchisee must relinquish those clients. If the area is already another franchisee's territory, the franchisee must pay an encroachment fee of $1,000 per job and 100% of the revenue from the sale to the franchisee whose territory was encroached upon. Boulder Designs does not grant franchisees any right of first refusal for orders originating outside their territory but encourages them to acquire adjacent territories to secure those clients.