Can a Boulder Designs franchisee solicit employees of other franchisees to terminate their relationship with that franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is not prohibited from soliciting or hiring other BOULDER DESIGN franchisee's employees. If Franchisee employs another BOULDER DESIGN franchisee's employee who has attended Franchisor's training within 12 months of the hire date with Franchisee, Franchisee shall pay to the other franchisee the then-current training fee of Franchisor plus the other franchisee's actual costs for sending its employee to training, including but not limited to travel costs, lodging, wages, and food.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, a franchisee is generally permitted to solicit or hire employees of other Boulder Designs franchisees. However, if a Boulder Designs franchisee hires an employee from another franchisee who has attended Boulder Designs' training within 12 months of being hired, the franchisee must pay the other franchisee the then-current training fee of Boulder Designs, plus the other franchisee's actual costs for sending its employee to training. These costs include, but are not limited to, travel costs, lodging, wages, and food.
This policy balances the need for franchisees to staff their businesses effectively with the investment that other franchisees make in training their employees. It suggests that Boulder Designs recognizes the value of its training program and seeks to compensate franchisees who lose recently trained employees to other locations.
Prospective franchisees should consider these potential costs when budgeting for staffing. They should also be aware of the implications for employee retention, as other franchisees may also solicit their employees. It is important to note that while solicitation is permitted, poaching employees who have recently undergone training comes with a financial responsibility to the franchisee who invested in that training.