Is Boulder Designs obligated to compensate a franchisee if they implement a suggestion made by the franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is encouraged to submit suggestions, in writing, to Franchisor for improving elements of the system, including products, services, equipment, service format, advertising and any other relevant matters, that Franchisor considers adopting or modifying standards, specifications and procedures for the system. Franchisee agrees that any suggestions made are Franchisor's exclusive property. Franchisor has no obligation to use any suggestions. If any suggestion is implemented by Franchisor, said suggestion will become part of the system and no compensation is owed to Franchisee. Franchisee may not use any suggestions inconsistent with Franchisee's obligations under this agreement without our written consent.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are encouraged to submit suggestions to improve the Boulder Designs system. These suggestions can relate to products, services, equipment, service format, advertising, or any other relevant matters. However, Boulder Designs has complete discretion over whether to implement any of these suggestions.
Importantly, the franchise agreement stipulates that any suggestions made by a franchisee become the exclusive property of Boulder Designs. This means that if Boulder Designs decides to use a franchisee's suggestion, the franchisee is not entitled to any compensation. The implemented suggestion simply becomes part of the Boulder Designs system.
This policy is not uncommon in franchising, as franchisors typically want to maintain control over their brand standards and operational procedures. By making any implemented suggestions part of the system without compensation, Boulder Designs ensures consistency and uniformity across all franchise locations. A prospective franchisee should consider this when deciding whether to invest in a Boulder Designs franchise, understanding that their ideas may be used without any financial reward.