What are the Boulder Designs franchisee's obligations regarding the Manual's confidentiality after the expiration, non-renewal, or termination of the franchise agreement?

According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees are obligated to maintain the confidentiality of the Manual's contents even after the franchise agreement expires, is not renewed, or is terminated. The Manual contains trade secrets and other confidential information belonging to Boulder Designs and its approved vendors. This obligation extends to all 'Covered Persons,' which likely includes employees and others with access to the Manual.

During the franchise term, franchisees must keep a current copy of the Manual at the approved location, whether in paper or electronic form, and maintain it securely. If the Manual is electronic, it must be kept in a password-protected file. Access is restricted to authorized personnel, who must sign a confidentiality agreement provided by Boulder Designs. Unauthorized disclosure, duplication, or use of the Manual is prohibited.

Upon termination or expiration of the franchise agreement, franchisees must also cease using the confidential information, system, and marks of Boulder Designs. This includes all signs, slogans, logos, advertising materials, and any other items associated with the marks. Franchisees must also deliver to Boulder Designs all information, including contracts, e-mail transmissions, written memorandums, customer sheets, or any other written or electronic data regarding customer lists or marketing efforts.

These stipulations ensure that Boulder Designs's proprietary information remains protected, preventing former franchisees from using it to compete unfairly or harm the brand's reputation. Prospective franchisees should carefully review the confidentiality obligations in the franchise agreement and understand the long-term implications of handling confidential information.