What representation does the Boulder Designs franchisee make regarding the ownership interests in the franchisee if the franchisee is a Business Entity?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Prospective Franchisee acknowledges: | Date | Initials | ||
|---|---|---|---|---|
| Date you received FDD | / | |||
| a franchise | Date of your first face-to-face meeting with a Boulder Designs Franchising representative for the purpose of discussing the sale or possible sale of | / | ||
| Date you received the Franchise Agreement with all blanks filled in except signatures Date you received a copy of any addendum or additional documents, if any, with all blanks filled in except signatures | / / | |||
| Date you signed the Franchise Agreement | Date you signed any addendum or additional documents | / / | ||
| representative | Earliest date you delivered a check or money to Boulder Designs or its | / | ||
| ACKNOWLEDGMENT REGARDING OWNERSHIP OR OTHER INTEREST | ||||
| is a(n): | Acknowledgment Regarding Controlling Persons. Franchisee hereby acknowledges that Franchise Owner | |||
| Individual | Corporation | |||
| Partnership | Limited Liability Company | |||
| Joint Venture | Other business form | |||
| beneficially, voting control of Franchise Owner: | (describe) Franchise Owner hereby warrants and represents that the following persons own, either legally or | |||
| NAME | TYPE OF OWNERSHIP (LEGAL OR BENEFICIAL) | PERCENTAGE OF INTEREST OWNED |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, if the franchisee is a business entity, they must acknowledge and provide details regarding ownership or other interests. Specifically, the franchisee warrants and represents the persons who own, either legally or beneficially, voting control of the Franchise Owner. This includes providing the name, type of ownership (legal or beneficial), and percentage of interest owned by each person.
This representation is crucial for Boulder Designs to understand the ownership structure of its franchisees, especially when the franchisee is not an individual but a business entity like a corporation or LLC. By requiring this disclosure, Boulder Designs aims to identify the individuals who ultimately control the franchise and ensure they meet the franchisor's standards and qualifications.
Prospective franchisees should be prepared to provide accurate and complete information about the ownership interests in their business entity. Failure to do so could potentially lead to issues with the franchise agreement or even its termination. This requirement is a standard practice in franchising, as franchisors typically want to know who is behind the business operating under their brand name.