What are the Boulder Designs franchisee's obligations regarding the use of the Information after the termination or expiration of the Franchise Agreement?

According to Boulder Designs's 2025 Franchise Disclosure Document, following the termination or expiration of the Franchise Agreement, the franchisee is obligated to cease using any of the Information related to the Boulder Designs franchise. The only exception to this rule is if the franchisee needs to use the information to comply with their post-term obligations as outlined in the agreement. Additionally, the franchisee must authorize their payment processor to release the Information exclusively to Boulder Designs and/or their designated parties.

This means that upon the end of the franchise term, a former franchisee cannot leverage any data or insights gained during their time operating the Boulder Designs business, including customer data, marketing strategies, or operational information. This restriction is in place to protect Boulder Designs's proprietary information and maintain a competitive advantage.

The franchisee's payment processor is also required to transfer all relevant information to Boulder Designs, ensuring that the franchisor retains control over all data related to the brand. This obligation is a standard practice in franchising, as it safeguards the franchisor's intellectual property and customer relationships after a franchise agreement concludes. It is important for prospective franchisees to understand these post-termination obligations before entering into an agreement with Boulder Designs.