Does Boulder Designs require franchisees to purchase items or services from 'Approved Suppliers'?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
If required by Franchisor, any such items or services shall be purchased only from "Approved Suppliers" that Franchisor designates or approves (which might include, or be limited to, Franchisor or an Affiliate, or
a third party from which Franchisor derives a fee or profit). Franchisee shall not offer for sale, sell or provide through the Franchised Business or from the Approved Location any items or services Franchisor has not approved in writing prior to first use.
Franchisor shall provide Franchisee, in the Manual or other written or electronic form, with a list of Approved Suppliers for some or all of the specified items and services, and Franchisor may from time to time issue revisions to such list. Franchisor's designation of a particular third-party supplier whom Franchisee must purchase, lease or license specified services from does not constitute a representation or warranty of the Approved Supplier's ability to meet Franchisee's requirements nor of the fitness or merchantability of the services sold, leased or licensed by the supplier. Franchisee understands and agrees that its sole remedy in the event of any shortages, delays or defects in the services purchased, sold, leased from a designated third party Approved Supplier shall be against the Approved Supplier, not Franchisor or Franchisor's Indemnitees.
Franchisee shall purchase certain supplies and equipment necessary for the Franchised Business from the Franchisor. Franchisor retains the right to add, delete or change such requirement regarding the designated or Approved supplier for such supplies and equipment. Currently the Franchisor shall be the sole supplier for such equipment and initial supplies, and other optional equipment and supplies as set forth in Schedule 1 of the Key Terms Page (Exhibit 1 to the Franchise Agreement). Franchisee shall not contract with alternative suppliers for these supplies and equipment, and accordingly there are no procedures for securing approval for alternative suppliers for such items. Franchisee shall pay in full all amounts due to Franchisor for such equipment and supplies identified in Attachment 1 of the Exhibit 1 of this Agreement in full same time and manner as the Initial Franchise Fee paid to the Franchisor or execute the Promissory Note and Security Agreement (attached hereto as Exhibit 9, if applicable) for amounts due Franchisor under this Section.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees may be required to purchase certain items or services from 'Approved Suppliers' designated or approved by Boulder Designs. These suppliers might include Boulder Designs itself, its affiliates, or third parties from which Boulder Designs receives a fee or profit. Franchisees cannot offer or sell any items or services that Boulder Designs has not approved in writing.
Boulder Designs will provide franchisees with a list of Approved Suppliers in the Manual or other written/electronic form, and may revise this list periodically. However, Boulder Designs does not guarantee the Approved Supplier's ability to meet the franchisee's requirements or the quality of their services. The franchisee's sole recourse for any issues with services purchased from a designated third-party Approved Supplier is against that supplier, not Boulder Designs.
Franchisees are required to purchase certain supplies and equipment directly from Boulder Designs. Boulder Designs retains the right to modify these requirements regarding designated or approved suppliers. Currently, Boulder Designs is the sole supplier for equipment and initial supplies, as detailed in Schedule 1 of the Key Terms Page (Exhibit 1 to the Franchise Agreement). Franchisees are prohibited from contracting with alternative suppliers for these specified supplies and equipment, and there is no procedure for securing approval for alternative suppliers. Franchisees must pay all amounts due to Boulder Designs for these items at the same time and in the same manner as the initial franchise fee, or execute a Promissory Note and Security Agreement.