What is the impact of a Boulder Designs franchisee committing an act that impairs the goodwill associated with the Marks?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Franchisor's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay to Franchisor immediately on demand. Franchisor has the right to terminate this Agreement for violation of this Section.
Franchisee shall, in all dealings with the customers, suppliers, Franchisor and the public, adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee agrees to refrain from any business or advertising practice which may be injurious to Franchisor's business and the goodwill associated with the Proprietary Marks and other Boulder Designs Businesses. Franchisee and Franchisee's employees shall be required to adhere to all aspects of this Section. Failure to adhere to this section shall result in a default of this Agreement. Franchisor's specifications do not constitute a warranty or representation, express or implied, as to quality, safety, suitability, fitness for a particular purpose or any manner. We will not be liable to you or others on account of the designation of standards for the operation of the Franchised Business under the System.
Franchisee and Franchisee's owners agree to comply, and to assist Franchisor to the fullest extent possible in our efforts to comply with Anti-Terrorism Laws (defined below). In connection with that compliance, Franchisee and Franchisee's owners certify, represent, and warrant that none of Franchisee's property or interests is subject to being blocked under, and that Franchisee and Franchisee's owners otherwise are not in violation of, any of the Anti-Terrorism Laws.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, franchisees must adhere to high standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, the franchisor, and the public. Franchisees must avoid any business or advertising practice that may harm Boulder Designs's business and the goodwill associated with its proprietary marks. Franchisees are responsible for ensuring that their employees also adhere to these standards. Failure to comply with these requirements constitutes a default of the Franchise Agreement.
Boulder Designs retains the right to intervene if it determines that its intervention is necessary to protect the System or the goodwill associated with it. If Boulder Designs believes that a franchisee has failed to adequately address or resolve customer complaints, Boulder Designs may resolve the complaints themselves and charge the franchisee an amount sufficient to cover their reasonable costs and expenses. The franchisee is then obligated to pay this amount to Boulder Designs immediately upon demand.
Furthermore, Boulder Designs has the right to terminate the Franchise Agreement if a franchisee violates these standards of conduct. This underscores the importance of maintaining the quality of customer service, appearance, and demeanor to protect the reputation and goodwill of the Boulder Designs brand. Prospective franchisees should understand that upholding these standards is not only an ethical obligation but also a contractual requirement with significant consequences for non-compliance.