Does Boulder Designs have an obligation to negotiate with national clients for the provision of goods and services by all System franchisees under the National Headstone Program?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- h. Reservation of Rights. Franchisor reserves and the Franchisee expressly acknowledges the Franchisor's exclusive right, but not the obligation, to negotiate directly or through an authorized third party (including, another franchisee) with national clients for the provision of goods and services by all System franchisees under this National Headstone Program or through any future national accounts programs that may be implemented by the Franchisor. Franchisor further reserves the right to terminate or change the terms of the National Headstone Program at its sole discretion upon written notice to the Franchisee which may be in the form of an electronic communication.
- i. Indemnification. Franchisee and Principals, jointly and severally, shall indemnify Franchisor and its officers, directors, shareholders, agents, and employees, in their individual or corporate capacities, from and against any and all claims, damages, or demands of any nature, whatsoever, arising out of or relating to this Agreement or the operation of the BOULDER DESIGN franchised businesses under the terms of the Franchise Agreements, this Agreement, or any other agreement between the Franchisor and the Franchisee and/or Guarantors.
The Franchisee further expressly acknowledges and agrees that all work completed by the Franchisee pursuant to this National Headstone Program shall be Franchisee's sole responsibility and shall indemnify the Franchisor in the event Franchisor incurs any cost or expense including but not limited to any claims as a result of the project completed by the Franchisee, or delivery and installation thereof. In the event a repair or warranty work needs to be done for the project completed by the Franchisee, Franchisor has the right to facilitate any warranty repairs and pass the costs onto Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs does not have an obligation to negotiate with national clients for the provision of goods and services by all System franchisees under the National Headstone Program. Boulder Designs retains the exclusive right, but not the obligation, to negotiate these contracts either directly or through a third party. This includes other franchisees or any future national accounts programs.
This reservation of rights allows Boulder Designs to control the National Headstone Program and any future national accounts programs. It also retains the right to modify or terminate the National Headstone Program at its discretion, providing written notice to the franchisee. This flexibility enables Boulder Designs to adapt the program as needed.
For a prospective franchisee, this means that while Boulder Designs may negotiate national contracts that could benefit the franchisee, it is not required to do so. The franchisee's participation in any national accounts program, including the National Headstone Program, is subject to the terms negotiated by Boulder Designs. The franchisee must provide indemnification to Boulder Designs for any claims arising from work completed under the National Headstone Program.