What is the impact of any theft charge on a Boulder Designs franchise agreement?
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. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT ACT, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by Franchisee or Franchisee's owners, or any blocking of Franchisee or Franchisee owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 17.2 below.
Section 13.9 Reserved
Section 13.10 Credit Cards
Franchisee shall honor all credit cards approved by Franchisor. Franchisee must obtain the prior written consent of Franchisor prior to honoring any previously unapproved credit cards or other credit devices. Franchisee shall keep all communication connections and access to financial and credit card information secure in a manner which is in compliance with all legal requirements and security requirements or issuing credit card companies.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the FDD does not specify the impact of a theft charge on a Boulder Designs franchise agreement. However, the document does state that Boulder Designs franchisees must adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, the franchisor, and the public. Failure to adhere to these standards results in a default of the agreement.
Additionally, Boulder Designs has the right to terminate the agreement if a franchisee violates the section regarding customer service and ethical conduct. This includes maintaining high standards of quality and service, resolving customer complaints promptly, and adhering to ethical conduct in all business dealings. If Boulder Designs believes that intervention is necessary to protect the system or goodwill, they may resolve complaints and charge the franchisee for the costs incurred.
While the FDD does not explicitly mention theft, a theft charge against a franchisee could potentially be viewed as a failure to adhere to the required standards of honesty, integrity, fair dealing, and ethical conduct. This could lead to a default of the agreement or even termination, depending on the severity and circumstances of the charge.
Prospective franchisees should seek clarification from Boulder Designs regarding how specific violations like a theft charge would be handled under the franchise agreement. It would be prudent to understand the potential consequences and any specific policies related to such matters.