Are the parents of a Boulder Designs franchisee's officer considered 'Covered Persons'?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Covered Person" means (i) the individual executing this Agreement as Franchisee; (ii) each Owner, officer, director, manager, trustee, or general partner and Internal Manager of Franchisee and each Franchisee Affiliate if Franchisee is a Business entity; and (iii) the spouse, adult children, parents, collaterals, or siblings of the individuals included in (i) and (ii).
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the parents of an officer of a Boulder Designs franchisee are considered 'Covered Persons.' The FDD defines 'Covered Person' to include several categories of individuals and entities connected to the franchisee.
Specifically, if the franchisee is a business entity, 'Covered Persons' include each owner, officer, director, manager, trustee, or general partner and Internal Manager of the franchisee, as well as each Franchisee Affiliate. Importantly, the definition extends beyond these direct participants.
In addition to the individuals directly involved in the franchisee entity, the definition of 'Covered Person' also encompasses the spouse, adult children, parents, collaterals, or siblings of the individuals included in the categories mentioned above. This broad definition means that the parents of an officer of a Boulder Designs franchisee would indeed be considered 'Covered Persons' under the terms of the franchise agreement.