What geographic area is covered by the non-competition agreement for Boulder Designs franchisees?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Individual agrees that for the period the Individual has a relationship with Franchisee and the period of two years after the Individual no longer has a relationship with Franchisee and has ceased engaging in the conduct stated below, Individual shall not, directly or indirectly, own an interest in, manage, operate, provide services to, carry on, be engaged in or take part in, or share in the earnings of any Competitive Business anywhere within (1) the greater of: (i) 25 miles of Franchisee's Approved Location as described in the Franchise Agreement; or (ii) the Territory, as detailed in Section 2.5 of the Franchise Agreement, also described as follows:
"Competitive Business" means any business that offers or provides (or grants franchises or licenses to others to operate a business that offers or provides) offers or sells engraved concrete signage or concrete landscaping products or other products or services that are the same as or similar to those sold by the Franchised Business or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or Boulder Designs' other franchisees; provided, however, that the term "Competitive Business" shall not apply to (a) any business operated by Franchisee under a franchise agreement with Franchisor, (b) any business operated by a publicly-held entity in which Franchisee owns less than a 5% legal or beneficial interest.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the non-competition agreement restricts franchisees and certain individuals associated with them from engaging in competitive business activities. During the term of the franchise and for two years after, the restriction applies within the greater of 25 miles of the franchisee's approved location or the territory as defined in the franchise agreement. This prevents them from owning, managing, operating, or providing services to a competitive business within that area.
The definition of a "Competitive Business" includes any business offering or selling engraved concrete signage, concrete landscaping products, or similar products/services to those of Boulder Designs. It also includes businesses where Boulder Designs' trade secrets or confidential information could be used to the disadvantage of Boulder Designs or its franchisees. However, the non-competition agreement does not apply to businesses operated under a Boulder Designs franchise agreement or publicly-held entities where the franchisee owns less than a 5% interest.
This non-compete agreement ensures that franchisees and related parties do not directly compete with Boulder Designs during and for a period after the franchise term. The geographic scope is determined by either a 25-mile radius from the approved location or the defined territory, whichever is larger. This protects Boulder Designs' market share and confidential information within the area where the franchisee was operating. Prospective franchisees should carefully consider the implications of this non-compete agreement, particularly if they have existing business interests or plan to engage in related activities after the franchise agreement ends.