Where must mediation occur for disputes related to a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. Integration/merger clause | Section 22.6 | Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 23.7 | Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law) | |
| v. Choice of forum | Section 23.2 | Litigation must be initiated and maintained in the judicial district in which our principal place of business is located at the time the lawsuit was initiated, currently Waco, Texas. We have the right to seek injunctive relief from any court of competent jurisdiction. (Subject to state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, mediation for disputes must occur in McLennan County, Texas. This requirement applies to all disputes except for actions or claims seeking injunctive relief or specific performance, or those relating to the Marks, Trade Secrets, or Confidential Information. However, this is subject to state law.
For a prospective Boulder Designs franchisee, this means that if a dispute arises that isn't related to injunctive relief, specific performance, trademarks, trade secrets, or confidential information, they will be required to participate in mediation in McLennan County, Texas, regardless of where their franchise is located. McLennan County is where Waco, Texas is located.
This could present a significant burden for franchisees located far from Texas, as they would incur travel and accommodation costs to attend mediation sessions. It is important to note that the FDD indicates that state law may supersede this provision, so franchisees should consult with legal counsel to understand their rights under the laws of their specific state. Franchisees should also be aware that litigation must be initiated and maintained in the judicial district in which Boulder Designs' principal place of business is located, which is currently Waco, Texas.