When is Boulder Designs Franchising, LLC released from liabilities under the lease?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
franchisee without the payment of any fee or other cost requirement, provided that, said franchisee meets Landlord's reasonable financial qualifications. Landlord shall not unreasonably withhold consent to such assignment. Thereafter, Franchisor shall be released from any and all further liabilities under the Lease. The parties agree to execute any commercially reasonable documents in furtherance of this section.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs Franchising, LLC is released from any further liabilities under the lease when the franchisee assigns the lease to another franchisee, provided the new franchisee meets the landlord's reasonable financial qualifications and the landlord consents to the assignment. The landlord's consent cannot be unreasonably withheld.
This clause protects Boulder Designs from ongoing lease obligations if a franchisee exits the business and a new franchisee takes over the location. It ensures a smooth transition without burdening Boulder Designs with lease responsibilities for a location they no longer directly control.
For a prospective Boulder Designs franchisee, this means that if they decide to sell their franchise to another party who is approved by both Boulder Designs and the landlord, Boulder Designs will step away from the lease agreement. This is a standard practice in franchising, as it allows for business continuity and reduces the franchisor's long-term liabilities.