Is a Boulder Designs franchisee's conviction of elderly abuse grounds for termination of the franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | 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 |
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 elderly abuse can be grounds for termination of the franchise agreement. Specifically, if a franchisee is convicted of or pleads "no contest" to a crime such as elderly abuse, Boulder Designs has the right to terminate the franchise agreement.
This provision aims to protect the reputation of Boulder Designs and its franchise system. The franchisor wants to ensure that individuals associated with the brand maintain a certain level of ethical and legal conduct. Conviction of certain crimes, including elderly abuse, is seen as a significant risk to the brand's image and goodwill.
It is important to note that the termination is not automatic upon conviction. Boulder Designs has the right to terminate the agreement, but it is not obligated to do so. The franchisor may consider the specific circumstances of the conviction and its potential impact on the business before making a final decision. This clause also applies to other offenses such as sex offenses, violent felonies, crimes against a human, sexual harassment against an employee, domestic abuse charges, animal abuse, substance abuse, DWI or DUI, and any theft charge.