What is prohibited regarding customers of Boulder Designs franchises after an owner ceases to be an owner?

According to Boulder Designs' 2025 Franchise Disclosure Document, for a period of two years after ceasing to be an owner, a former franchisee is restricted from soliciting or providing services to any client previously serviced by the franchised Boulder Designs business. This restriction applies specifically if a broader two-year restrictive period covering competitive business activities is deemed unenforceable under applicable law as an unreasonable restraint of trade.

This means that if the standard non-compete clause is challenged and found to be too broad, a more limited restriction comes into effect, preventing the former franchisee from targeting the existing customer base of their previous Boulder Designs franchise. This is designed to protect the goodwill and customer relationships established by the franchise during its operation.

For a prospective Boulder Designs franchisee, this implies that upon exiting the franchise system, they may face limitations on who they can solicit or provide services to, particularly if they choose to remain in a similar line of business. It is important to understand the specific laws governing non-compete agreements in their jurisdiction and how they might affect their ability to operate independently after leaving the Boulder Designs system. This clause aims to strike a balance between protecting the franchisor's interests and allowing the former franchisee to pursue their livelihood.