What happens if a Boulder Designs franchisee discloses, duplicates, or otherwise misuses the Manual, Confidential Information or the Marks?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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| q. Non-competition covenants during the term of the franchise |
Sections 7.3 and 7.4 |
You, your owners (and members of their families and collaterals) and your officers, directors, executives, managers, and employees are prohibited from: attempting to divert any customer, employee or other business associate of ours, the Franchised Business, our Affiliate(s) or any other franchisee to a Competitive Business, or soliciting or attempting to induce any customer, employee or other business associate of ours, the Franchised Business, our Affiliate(s) or any other franchisee to terminate or modify their business relationship with Us, the Franchised Business, our Affiliate(s) or any other franchisee or causing injury or prejudice to the Marks or the System; owning or working for a Competitive Business. (Subject to state law) |
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| r. Non-competition covenants after the franchise is terminated or expires | Section 17.2 | For three years after the termination or expiration of the Franchise Agreement, you, your owners (and members of their families and collaterals) and your officers, directors, executives or managers are prohibited from: owning or working for a business that offers or sells engraved concrete signage or concrete landscaping products or other products or services that are similar to those sold by the Franchised Business within 25 miles of the Approved Location or within the Territory (whichever is greater), and within 25 miles of any other BOULDER DESIGNS Businesses; or soliciting or influencing any consumers, employees or business associates of ours, our Affiliate(s) or any other franchisee to terminate or modify their business relationship with Us, our Affiliate(s) or any other franchisee.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not explicitly detail the specific repercussions a Boulder Designs franchisee would face for disclosing, duplicating, or misusing the Manual, Confidential Information, or the Marks. However, the document does outline non-competition covenants both during and after the franchise term, which suggests measures to protect Boulder Designs's proprietary information and brand.
During the franchise term, as detailed in Sections 7.3 and 7.4, franchisees are prohibited from diverting customers or business associates to a competitive business, soliciting or inducing anyone to terminate their relationship with Boulder Designs, or causing injury or prejudice to the Marks or the System. After the franchise is terminated or expires, Section 17.2 imposes a three-year non-competition covenant, preventing franchisees from engaging in similar businesses within a specified radius of Boulder Designs locations.
While the FDD does not directly address the consequences of misusing confidential information, the non-competition clauses indicate the franchisor's intent to protect its business interests. A prospective franchisee should seek clarification from Boulder Designs regarding the specific penalties or legal actions that could arise from unauthorized disclosure, duplication, or misuse of the Manual, Confidential Information, or the Marks. Understanding these potential ramifications is crucial for ensuring compliance and avoiding potential disputes during and after the franchise agreement.