Is a Boulder Designs franchisee's conviction of DWI or DUI grounds for termination of the franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Summary | 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; are | | | | conviction or "no contest" plea to a crime or | | | | offense that would place them on the sex | | | | offenders registry, was a violent felony, crimes | | | | against a human, sexual harassment against an | | | | employee, domestic abuse charges, animal | | | | abuse, elderly abuse, substance abuse, DWI or | | | | DUI, any theft charge or is likely to affect the | | | | reputation of either party or the Franchised | | | | Business; disclose, duplicate, or otherwise | | | | misuse the Manual, Confidential Information | | | | or the Marks; are adjudicated bankrupt, | | | | insolvent or make a general assignment for the | | | | benefit of creditors or to pay any fees due us or | | | | any Affiliate; receive three or more default | | | | notices within two years,(or failure on 2 or | | | | more separate noticed occasions to comply | | | | with the same obligation in any time-frame); | | | | continue to violate any health, safety or other | | | | laws or conduct the Franchised Business in a | | | | manner creating a health or safety hazard to | | | | customers, employees or the public; take any | | | | action reserved to us; fail to comply with | | | | applicable law after notice; repeatedly breach | | | | the Franchise Agreement or fail to comply with | | | | specifications; engaging in wholesale | | | | transactions without our prior written consent; | | | | or default under any other agreement between | | | | you and us(or an Affiliate) such that we (or the | | | | Affiliate) have the right to terminate the | | | | agreement. Termination of a Franchise | | | | Agreement will not automatically result in the | | | | Sections | | |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee's conviction of DWI or DUI can be grounds for termination of the franchise agreement. Specifically, if a franchisee is convicted of or pleads "no contest" to DWI or DUI, Boulder Designs has the right to terminate the agreement.
This provision means that prospective Boulder Designs franchisees should be aware that their personal conduct, even outside of the business, could have serious repercussions for their franchise ownership. A conviction for DWI or DUI, or even pleading "no contest" to such a charge, provides Boulder Designs with the contractual right to terminate the franchise agreement.
It is important to note that the FDD also states that the franchise agreement can be modified only by written agreement between the franchisee and Boulder Designs. This suggests that while the initial agreement allows for termination due to a DWI or DUI conviction, there might be room for negotiation or modification in specific circumstances, although this is not guaranteed and would be at Boulder Designs' discretion.