Can Boulder Designs operate similar businesses under a different trademark within a franchisee's territory?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
to secure those clients.
Whether you operate within a Separate Territory or a Shared Territory, we and our affiliates have the right to operate and to grant others the right to operate similar or competing businesses under a different trademark in your Territory. We and our affiliates also have the right to distribute products and services identified by the BOULDER DESIGNS trademark through alternative channels of distribution, including online sales and infomercials. There are no restrictions on our soliciting or accepting orders from consumers inside your Territory, and we need not compensate you for soliciting or accepting orders from inside your Territory. You may neither directly solicit nor advertise outside of the Territory, including on the Internet, without our prior written consent.
We also reserve the right, to enter into agreements with specific regional or national customers in order to establish a National Account, in any area, including in the Territory. If we establish a National Account in your Territory you agree to service the National Account under the same terms, pricing, and provisions negotiated for the National Account. Under certain circumstances if we determine in our sole discretion that you are not capable of servicing the National Account, or if the volume of services exceed demand at the time, we may authorize other Boulder Designs franchisees or other qualified third-parties to provides the services and you will not be compensated for us or other franchisees providing services within your Territory.
Currently we require you to participate in a National Headstone Program, a Boulder Designs National Account for which we will collect a deposit due per project. Simultaneously with the execution of the franchise agreement, you must execute our National Headstone Program Agreement attached as Exhibit 11 to the franchise agreement. At the time of execution, you must pay a deposit and the deposit is based on template and materials selected by the customer and could vary based on the total project cost ("Project Deposit").
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs retains the right to operate or allow others to operate similar or competing businesses under different trademarks within a franchisee's territory, regardless of whether the franchisee has a Separate Territory or a Shared Territory. This means that even if a franchisee is meeting their obligations under the Franchise Agreement, Boulder Designs can still introduce competition into the franchisee's market. Boulder Designs also retains the right to distribute products and services identified by the Boulder Designs trademark through alternative channels of distribution, including online sales and infomercials.
This lack of territorial exclusivity is a significant consideration for potential Boulder Designs franchisees. While franchisees are expected to maximize sales within their territory, Boulder Designs places no restrictions on soliciting or accepting orders from consumers inside a franchisee's territory, and Boulder Designs is not obligated to compensate the franchisee for these sales. The franchisee is also restricted from soliciting or advertising outside of their territory without prior written consent from Boulder Designs.
Boulder Designs also reserves the right to establish National Accounts in any area, including a franchisee's territory. If a National Account is established in a franchisee's territory, the franchisee is obligated to service the National Account under the terms and pricing negotiated for that account. However, Boulder Designs has the discretion to authorize other Boulder Designs franchisees or qualified third parties to provide services to the National Account if they determine the franchisee is not capable of handling the account or if the service volume exceeds demand. In such cases, the franchisee will not be compensated for services provided by others within their territory.
Furthermore, Boulder Designs can unilaterally convert a Separate Territory into a Shared Territory if a franchisee fails to meet a minimum performance target or minimum gross revenue requirement. This Shared Territory would consist of a population greater than 450,000. These provisions highlight the importance of understanding the specific terms of the Franchise Agreement and the potential for competition and changes to the territory structure.