Does the individual agree that complying with the Boulder Designs agreement will not cause undue hardship?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisees, Franchisor has the right to require that all sales made by the competitive business are reported to Franchisor. Individual will also pay to Franchisor, without demand, a weekly fee of $1000, retroactive to the first date of the violation and for each week that the violation continues or until judicial order is entered, without being deemed to revive or modify this Agreement. These payments are liquidated damages to compensate Franchisor for its damages from Individual's violation of this covenant not to compete and are not a penalty. Individual agrees that the length of time and geographical restrictions contained in this Agreement are fair and reasonable and not the result of overreaching, duress or coercion of any kind. Individual agrees that its full, uninhibited and faithful observance of each of the covenants in this Section will not cause any undue hardship financial or otherwise and that the enforcement of each of these covenants in this Section will not impair Individual's ability to obtain employment commensurate with Individual's abilities and on terms fully acceptable to Individual or otherwise to obtain income required for the comfortable support of Individual and Individual's family and the satisfaction of Individual's creditors.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the individual agrees that adhering to the covenants within the franchise agreement will not result in undue financial or other hardships. The individual also acknowledges that enforcing these covenants will not hinder their ability to find suitable employment or secure income necessary for supporting themselves and their family. This agreement underscores the individual's understanding and acceptance of the obligations without any reservations.
This agreement also acknowledges that the individual's specialized knowledge of the Boulder Designs franchise could cause significant harm to Boulder Designs and its franchisees if this knowledge were used to benefit a competitor. This highlights the importance of protecting Boulder Designs's proprietary information and maintaining fair competition within the franchise system.
Furthermore, the individual certifies that they have carefully read the agreement, fully understand its obligations, and accept them without any inducements or promises outside of what is contained in the agreement itself. This clause aims to prevent future disputes based on misunderstandings or alleged verbal agreements not documented in the written contract. This is a common clause in franchise agreements to ensure clarity and prevent franchisees from claiming they were misled or unaware of their obligations.