Is a Boulder Designs franchisee's business activities confined to retail transactions?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's business activities are confined to retail transactions only. Franchisee may not enter into any Wholesale Transactions in Franchisee's Territory without first obtaining Franchisor's written consent. Franchisee acknowledges and agrees that conducting Wholesale Transactions without Franchisor's prior approval is a material breach of this Franchise Agreement, for which Franchisor may terminate the Franchise Agreement for cause without an opportunity to cure. Whether retail or wholesale, Franchisee may not offer or sell products or services outside of the Territory without prior written approval from
Franchisor, and Franchisor may revoke its permission at any time at its sole discretion with 10 days' written notice to Franchisee. If any Wholesale Transactions interferes with National Accounts, Franchisee must immediately cease those Whole Transactions upon Franchisor's written notice. Franchisee shall use best efforts to maximize sales within the Territory, and Franchisee may not directly or indirectly solicit or advertise outside of the Territory, including on the Internet, without Franchisor's prior written consent. Franchisee shall only sell such customized Boulder Designs products within the Territory. Franchisee may participate in trade shows but such shows are confined to the Territory unless prior written approval has been provided by Franchisor. Franchisee may only sell items at such trade shows that Franchisor specifies and approves.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee's business activities are primarily focused on retail transactions. The franchise agreement states that franchisees may not engage in wholesale transactions without prior written consent from Boulder Designs. Conducting wholesale transactions without approval is considered a material breach of the agreement and could lead to termination of the franchise.
While retail transactions are the primary focus, franchisees may seek approval to engage in wholesale activities. However, Boulder Designs retains the right to revoke this permission at any time with just 10 days' written notice. Furthermore, if any wholesale transactions interfere with national accounts, the franchisee must immediately cease those transactions upon written notice from Boulder Designs.
To maximize sales, franchisees are expected to focus their efforts within their designated territory and are restricted from soliciting or advertising outside of it, including online, without prior written consent. Trade show participation is also limited to the franchisee's territory unless approval is granted, and only approved items may be sold at such events. These restrictions ensure that franchisees concentrate on retail sales within their territory while adhering to Boulder Designs' guidelines and protecting national accounts.