If the Boulder Designs franchisee is a Business Entity, what representations and warranties does the franchisee make regarding its organization and qualification to do business?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 24.4 Risk
Franchisee represents it has conducted an independent investigation of the business contemplated by this Agreement and acknowledges that, like any other business, an investment in a BOULDER DESIGNS Business involves business risks and the success of the venture is dependent, among other factors, upon the business abilities and efforts of Franchisee. Franchisor makes no representations or warranties, express or implied, in this Agreement or otherwise, as to the potential success of the business venture contemplated hereby. In addition, Franchisor makes no warranty as to Franchisees ability to operate the Franchised Business in the Territory. It is Franchisee's obligation to seek or obtain advice of counsel specifically on this issue. If legislation enacted by, or regulation of, any governmental body restricts or prevents Franchisee's operation of the Franchised Business in the Territory, the Franchisor is not liable for damages, nor required to indemnify Franchisee or to return any monies received from Franchisee.
Section 24.5 No Guarantee of Success
Franchisee represents and acknowledges it has not received or relied on any guarantee, express or implied, as to the revenues, profits or likelihood of success of the Franchised Business. Franchisee represents and acknowledges there have been no representations by Franchisor's directors, managers, members, employees, attorneys or agents that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure document or this Agreement.
Section 24.6 No Violation of Other Agreements
Franchisee represents its execution of this Agreement will not violate any other agreement or commitment to which Franchisee or any Owner is a party.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, if a Boulder Designs franchisee is a business entity, they make several representations and warranties to the franchisor. These include representations that the franchisee has conducted an independent investigation of the Boulder Designs business and acknowledges the inherent business risks. The franchisee also confirms that the execution of the franchise agreement does not violate any other agreements or commitments they or any owner are party to.
Furthermore, the Boulder Designs franchisee acknowledges that they have not received or relied on any guarantees regarding the potential success, revenues, or profits of the franchised business. They also confirm that no representations have been made by Boulder Designs' directors, managers, employees, or agents that are inconsistent with the Franchise Disclosure Document or the franchise agreement itself. These representations are crucial as they establish the franchisee's understanding of the business and their acceptance of the risks involved.
These representations and warranties are standard practice in franchising, intended to protect Boulder Designs from future claims of misrepresentation or reliance on unsubstantiated promises. A prospective Boulder Designs franchisee should carefully review these representations and ensure they are accurate and truthful before signing the franchise agreement. It is also advisable for the franchisee to seek independent legal counsel to fully understand the implications of these representations and warranties.