If the Boulder Designs franchisee is a business entity, what does the franchisee warrant and represent regarding its organization?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Prospective Franchisee acknowledges: | Date | Initials | ||
|---|---|---|---|---|
| Date you received FDD | / | |||
| a franchise | Date of your first face-to-face meeting with a Boulder Designs Franchising representative for the purpose of discussing the sale or possible sale of | / | ||
| Date you received the Franchise Agreement with all blanks filled in except signatures Date you received a copy of any addendum or additional documents, if any, with all blanks filled in except signatures | / / | |||
| Date you signed the Franchise Agreement | Date you signed any addendum or additional documents | / / | ||
| representative | Earliest date you delivered a check or money to Boulder Designs or its | / | ||
| ACKNOWLEDGMENT REGARDING OWNERSHIP OR OTHER INTEREST | ||||
| is a(n): | Acknowledgment Regarding Controlling Persons. Franchisee hereby acknowledges that Franchise Owner | |||
| Individual | Corporation | |||
| Partnership | Limited Liability Company | |||
| Joint Venture | Other business form | |||
| beneficially, voting control of Franchise Owner: | (describe) Franchise Owner hereby warrants and represents that the following persons own, either legally or | |||
| NAME | TYPE OF OWNERSHIP (LEGAL OR BENEFICIAL) | PERCENTAGE OF INTEREST OWNED |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if the franchisee is a business entity, they must acknowledge certain details regarding ownership and controlling persons. Specifically, the franchisee must specify the type of business entity (Corporation, Partnership, Limited Liability Company, Joint Venture, or Other), and provide the names of individuals who own either legally or beneficially, voting control of the Franchise Owner, along with the type of ownership (legal or beneficial) and the percentage of interest owned.
This requirement ensures that Boulder Designs knows who the controlling parties are within the franchisee's business entity. This is a common practice in franchising, as the franchisor wants to be certain about who is ultimately responsible for the operation of the franchise and compliance with the franchise agreement.
For a prospective Boulder Designs franchisee, this means that if you plan to operate the franchise through a corporation, LLC, or other business entity, you will need to disclose detailed information about the ownership structure. This includes identifying all individuals with a legal or beneficial ownership interest and specifying their percentage of ownership. It is important to ensure that this information is accurate and up-to-date, as any changes in ownership may need to be reported to Boulder Designs.
Failure to provide accurate and complete information about the ownership of the franchisee entity could potentially lead to issues with the franchise agreement or even termination of the franchise. Therefore, it is crucial to carefully review and understand these requirements before signing the franchise agreement.