factual

Does Boulder Designs make representations about the past financial performance of franchised outlets?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 44)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs does not make any representations or guarantees regarding the potential financial success of a franchise. Section 24.5 of the franchise agreement explicitly states that franchisees should not rely on any guarantees, express or implied, about the revenues, profits, or likelihood of success of the franchised business. Furthermore, franchisees acknowledge that no representations have been made by Boulder Designs' directors, managers, employees, or agents that are inconsistent with the statements in the Franchise Disclosure Document or the agreement itself.

This disclaimer is a standard practice in franchising. It emphasizes that the success of a Boulder Designs franchise depends on the franchisee's own business abilities and efforts. The FDD underscores that investing in a Boulder Designs franchise, like any business venture, involves inherent risks. Prospective franchisees are advised to conduct their own independent investigation of the business opportunity and to seek advice from legal and financial professionals.

The Boulder Designs FDD makes it clear that franchisees are responsible for their own due diligence and should not expect any guarantees of financial performance from Boulder Designs. This protects Boulder Designs from potential liability if a franchise does not perform as expected. It also places the onus on the franchisee to assess the risks and rewards of the business opportunity.

In summary, the Boulder Designs franchise agreement contains explicit disclaimers regarding any guarantees or representations of financial success. A potential franchisee must acknowledge that they have not relied on any such guarantees and that the success of the venture depends on their own efforts and abilities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.