What post-ownership restrictions are placed on an Owner of a Boulder Designs franchise after they cease to be an Owner?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
While I am an "Owner" of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), I will not:
6.1 divert or attempt to divert any present or prospective customer of any BOULDER DESIGNS franchises to any competitor or do anything to harm the goodwill associated with the Marks and the System;
6.2 employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or
6.3 own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with, any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise operated pursuant to a valid franchise agreement with Franchisor.
This restriction shall apply, while I am an Owner, to any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Franchisor or its Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks.
It will apply for two years after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first) to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks.
If the two-year restrictive period would be unenforceable under applicable law as an unreasonable restraint of trade, then such restriction is modified to prohibit you and each Owner, as applicable, from soliciting or providing services, during said two-year period, to any client previously serviced by the Franchised Business.
This two-year restriction will be tolled during any period of my noncompliance.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, there are specific restrictions placed on former Owners for a period of two years after they cease to be an Owner or two years after the termination or expiration of the Franchise Agreement, whichever occurs first. These restrictions are designed to protect Boulder Designs' interests and goodwill.
Specifically, a former Owner cannot divert or attempt to divert any present or prospective customer of any Boulder Designs franchises to any competitor, nor can they do anything to harm the goodwill associated with the Boulder Designs marks and system. Additionally, they are prohibited from employing or seeking to employ any person who is or has been within the previous 30 days employed by Boulder Designs or an affiliate of Boulder Designs as a salaried managerial employee, or induce such person to leave their employment.
These restrictions apply to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks. However, if the two-year restrictive period is deemed unenforceable under applicable law as an unreasonable restraint of trade, the restriction is modified to prohibit the former Owner from soliciting or providing services to any client previously serviced by the Franchised Business during the two-year period. The two-year restriction will be tolled during any period of noncompliance.