What happens if the Boulder Designs Franchisor terminates the Franchise Agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 17 - RIGHTS AND DUTIES UPON EXPIRATION OR TERMINATION
Section 17.1 Actions to be Taken
Except as otherwise provided herein, upon termination and non-renewal or expiration, this Agreement and all rights granted herein to Franchisee shall terminate and Franchisee shall:
i. immediately cease to operate the Franchised Business, shutter any office to the public, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or Former Franchisee of Franchisor;
ii. deliver to Franchisor, all information, including any contracts, e-mail transmissions, written memorandums, customer sheets, or any other written or electronic data regarding customer lists or marketing efforts;
iii. refrain from taking any action to reduce the goodwill of Franchisee's Customers or potential Customers, towards Franchisor, other Franchisees or any other aspect of the System;
iv. cease to use the Confidential Information, the System and the Marks including, without limitation, all signs, slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
v. immediately take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any fictitious or assumed name or equivalent registration filed with state, city or county authorities which contains the name "Boulder Designs" or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five days after termination or expiration of this Agreement;
vi. pay all sums owing, after the Effective Date of Termination or Expiration of this Agreement through the date that Franchisee completes all post termination obligations required under this Agreement, to Franchisor, and any Affiliate, which may include, but not be limited to, all damages, liquidated damages, costs and expenses, unpaid Royalty Fees, Marketing Fee, Technology Fee, or any other amounts due to Franchisor or any Affiliate within five (5) days after Termination or expiration of this Agreement or the date on which Franchisee completes all post-termination obligations required under this Agreement, whichever occurs first;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, several actions must be taken upon termination or non-renewal of the Franchise Agreement. The franchisee must immediately cease operating the franchised business and cannot represent themselves as a current or former Boulder Designs franchisee. They are required to deliver all information, including contracts, emails, customer sheets, and any other written or electronic data regarding customer lists or marketing efforts, to Boulder Designs.
Furthermore, the franchisee must refrain from any action that could reduce the goodwill of customers or potential customers toward Boulder Designs, other franchisees, or any aspect of the Boulder Designs system. They must also stop using all confidential information, the system, and the marks, including signs, slogans, logos, advertising materials, and stationery. The franchisee is obligated to take necessary actions to cancel or assign any fictitious name registrations containing "Boulder Designs" to the franchisor.
Financially, the franchisee is responsible for paying all sums owed to Boulder Designs and its affiliates from the effective date of termination through the date all post-termination obligations are completed. This includes damages, liquidated damages, costs, expenses, unpaid royalty fees, marketing fees, technology fees, or any other amounts due. All payments must be made within five days after termination or the completion of post-termination obligations, whichever occurs first. Additionally, the franchisee must assign telephone listings and numbers to Boulder Designs upon termination of the Franchise Agreement.
Moreover, a significant restriction is placed on the franchisee and any owner of the franchisee. For two years after ceasing to be an owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), they are prohibited from diverting customers, employing Boulder Designs' salaried managerial employees, or engaging in any competitive business involving landscape architecture or outdoor living construction services within the United States or any area where Boulder Designs operates or licenses businesses. This includes not owning, maintaining, advising, operating, or investing in any such competing business. This restriction can be modified to prohibit soliciting or providing services to clients previously serviced by the franchised business if the two-year restrictive period is deemed unenforceable under applicable law.