factual

Is a Boulder Designs franchisee's conviction of domestic abuse charges grounds for termination of the franchise?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

nt.**

THE FRANCHISE RELATIONSHIP

Provision Section in the Summary
Franchise Agreement
a. Length of the franchise Section 4.1 10 years.
term
b. Renewal or extension of Section 4.2 Additional 10-year term if certain conditions
the term are met.
Provision Section in the Franchise Agreement Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee.
s. Modification of the Sections 9.2 and The Franchise Agreement can be modified
agreement 22.6 only by written agreement between you and us.
t. Integration/merger clause Section 22.6 Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable.
u. Dispute resolution by arbitration or mediation Section 23.7 Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law)
v. Choice of forum Section 23.2 Litigation must be initiated and maintained in the judicial district in which our principal place of business is located at the time the lawsuit was initiated, currently Waco, Texas. We have the right to seek injunctive relief from any court of competent jurisdiction. (Subject to state law)
w. Choice of law Section 23.1 Texas law applies (subject to state law), except that disputes over the Marks will be governed by the United States Trademark Act of 1946.
Section in the
Franchise
Summary
Agreement
Agreement following a default, your interest in
the franchise will terminate.
5.4, 5.5.
We can terminate if you fail to develop the
and 16.2
Approved Location within 180 days after the
Effective Date of the Franchise Agreement. We
also can terminate for failure to pay the Initial
Franchise Fee or other amounts due within 10
days after receiving written notice; failure to
have your Internal Manager satisfactorily
complete any training program; attempted or
actual transfer of business in violation of the
Franchise Agreement; misuse of the Marks, or
other act which impairs the goodwill of any of
the Marks; material misrepresentation or
omission in your franchise application;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)

What This Means (2025 FDD)

The 2025 Boulder Designs Franchise Disclosure Document does not explicitly state that a franchisee's conviction of domestic abuse charges is grounds for termination. However, the FDD does state conditions under which Boulder Designs can terminate a franchise agreement. These include failure to develop the Approved Location within 180 days, failure to pay the Initial Franchise Fee or other amounts due within 10 days after written notice, failure to have an Internal Manager satisfactorily complete any training program, attempted or actual transfer of business in violation of the Franchise Agreement, misuse of the Marks, or other act which impairs the goodwill of any of the Marks, and material misrepresentation or omission in your franchise application.

Item 17 of the Boulder Designs FDD outlines various scenarios and conditions related to termination, renewal, transfer, and dispute resolution. It includes summaries of relevant sections within the Franchise Agreement, such as the length of the franchise term (10 years) and conditions for renewal or extension (additional 10-year term if certain conditions are met). The document also addresses modification of the agreement, integration/merger clauses, dispute resolution via arbitration or mediation, choice of forum, and choice of law. These provisions are subject to state law, which may override certain aspects of the agreement.

Prospective Boulder Designs franchisees should carefully review the entire Item 17, along with the referenced sections of the Franchise Agreement, to fully understand the conditions under which their franchise could be terminated. Given the absence of a specific clause regarding domestic abuse convictions, it would be prudent for potential franchisees to seek clarification from Boulder Designs regarding their policies on this matter and how it might affect their franchise agreement. It is also important to consult with a legal professional to assess the implications of these terms under applicable state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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