Is Boulder Designs Franchising, LLC a party to the lease initially?

According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs Franchising, LLC is not initially a party to the lease between the landlord and the franchisee (tenant). However, the FDD outlines specific conditions and rights that Boulder Designs retains concerning the lease and the premises.

Boulder Designs has the option to cure a franchisee's default on the lease. If Boulder Designs chooses to cure the default or notifies the landlord of the franchise agreement's termination, the landlord must, upon written request from Boulder Designs, assign any rights under the lease to Boulder Designs to remove the franchisee from the premises. Boulder Designs can then choose to perform the lease terms for up to six months or assume the lease entirely.

Furthermore, the landlord must provide Boulder Designs with copies of any notices sent to the franchisee regarding the lease and must notify Boulder Designs of any franchisee default, giving Boulder Designs the opportunity to cure the default before the landlord takes action. The franchisee cannot assign the lease or modify it without Boulder Designs' prior written consent. Boulder Designs also has the right to enter the premises to protect its system and marks or to cure any default under the franchise agreement or lease.

In essence, while the franchisee initially enters the lease agreement, Boulder Designs maintains significant control and rights related to the lease, including the ability to assume the lease under certain conditions. This arrangement provides Boulder Designs with mechanisms to protect its brand and system, even if a franchisee fails to meet their lease obligations.