What information obtained from or about a Boulder Designs franchisee is considered the Franchisor's property?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the information Franchisor or its affiliates obtain from Franchisee or about Franchisee's BOULDER DESIGNS franchise, and all information in Franchisee's records or Franchisors concerning the members of Franchisee's BOULDER DESIGNS franchise (the "Information") and all revenues we derive from the Information will be our property. However, Franchisee may at any time during the term of this Agreement use in the operation of Franchisee's BOULDER DESIGNS franchise (but for no other purpose), to the extent lawful and at Franchisee's sole risk and responsibility, any information that Franchisee acquire from third parties in operating Franchisee's BOULDER DESIGNS franchise, such as customer data. The Information (except for information Franchisee provides to the Franchisor or its affiliates, including information provided by Franchisee's officers, directors, shareholders, partners or equity members of
Franchisee entity) will become Franchisor property which Franchisor may use for any reason as Franchisor may deem necessary or appropriate in Franchisor's sole discretion. Franchisee hereby authorize Franchisee's any payment processors to release the information to the Franchisor at any time. Following termination or expiration of this Agreement, Franchisee will no longer use any of the Information, except to comply with Franchisee's post-term obligations under this Agreement and Franchisee authorizes Franchisee's payment processor to release the Information exclusively to the Franchisor and/or Franchisor's designees.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs considers all information it or its affiliates obtain from a franchisee or about a franchisee's Boulder Designs franchise to be its property. This includes all information in the franchisee's records or the franchisor's records concerning members of the franchisee's Boulder Designs franchise. Boulder Designs also claims ownership of all revenues derived from this information.
The franchisee is allowed to use information acquired from third parties in operating their Boulder Designs franchise, such as customer data, but only during the term of the agreement and solely for the operation of the franchise. This use is at the franchisee's own risk and responsibility, provided it is lawful. However, information the franchisee provides to Boulder Designs or its affiliates, including data from the franchisee's officers, directors, shareholders, partners, or equity members, immediately becomes Boulder Designs' property.
Boulder Designs retains the right to use this information for any reason it deems necessary or appropriate. The franchisee authorizes their payment processors to release this information to Boulder Designs at any time. Upon termination or expiration of the franchise agreement, the franchisee must cease using any of the information, except to fulfill post-term obligations under the agreement, and must authorize their payment processor to release the information exclusively to Boulder Designs or its designees. This clause ensures Boulder Designs maintains control over critical data related to its franchisees and their operations, even after the franchise relationship ends.