factual

What does 'full-time' mean in the context of the Internal Manager's obligation to the Boulder Designs franchise?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchised Business must always be under the direct supervision of your Internal Manager, who must devote their full-time, best efforts to the operation of the Franchised Business. Your Internal Manager need not have an equity interest in the franchise, but must satisfactorily complete our initial training program and must sign a Non-Disclosure Agreement and Non-competition Agreement substantially in the form attached as Exhibit 2 to the Franchise Agreement. We also recommend, but do not require, that an individual with an equity interest in the franchise personally participate in the business and supervise operations.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, the Franchised Business must be under the direct supervision of your Internal Manager, who must devote their full-time, best efforts to the operation. The Internal Manager is not required to have an equity interest in the franchise. However, they must complete the initial training program and sign a Non-Disclosure Agreement and Non-competition Agreement. Boulder Designs also recommends, but does not require, that an individual with an equity interest in the franchise personally participate in the business and supervise operations.

For a prospective Boulder Designs franchisee, this means that if you choose not to directly manage the business yourself, you must appoint an Internal Manager who will dedicate their full working time and energy to the franchise. This individual will be responsible for the day-to-day operations and must be approved by Boulder Designs. While the Internal Manager doesn't need to be an owner, they are held to certain standards, including completing the initial training and signing legal agreements to protect Boulder Designs' interests.

The requirement for 'full-time' effort from the Internal Manager ensures that the Boulder Designs franchise receives the necessary attention and oversight to maintain quality and operational standards. This is a common practice in franchising, as franchisors want to ensure that franchisees are actively involved in managing the business, whether directly or through a designated manager. The recommendation that an owner also participate in the business suggests that Boulder Designs values owner involvement, even if they delegate the day-to-day management to an Internal Manager.

It is important for potential Boulder Designs franchisees to understand the obligations and qualifications of the Internal Manager, as this role is critical to the success of the franchise. Franchisees should carefully select and train their Internal Manager to ensure they meet Boulder Designs' standards and can effectively manage the business. Additionally, franchisees should consider the benefits of having an owner actively involved in the business, even if they also employ an Internal Manager.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.