What is the required role for the Internal Manager in the operation of a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchised Business must always be under the direct supervision of your Internal Manager, who must devote their full-time, best efforts to the operation of the Franchised Business. Your Internal Manager need not have an equity interest in the franchise, but must satisfactorily complete our initial training program and must sign a Non-Disclosure Agreement and Non-competition Agreement substantially in the form attached as Exhibit 2 to the Franchise Agreement. We also recommend, but do not require, that an individual with an equity interest in the franchise personally participate in the business and supervise operations.
Franchisee will maintain a competent, conscientious staff and contract or employ the minimum number of individuals necessary to meet the anticipated volume of business and to achieve the goals of the system. Franchisee will take all steps necessary to ensure that Franchisee's Internal Managers and employees meet the employment criteria, keep a neat appearance, and comply with any dress code Franchisor requires, and subject to the requirements of landlords, if applicable. Franchisee is solely responsible for the terms of its employees' employment and independent Internal Managers' compensation and, except for training under this agreement, for the proper training of the employees in the operations of Franchisee's Boulder Designs business. Franchisee is solely responsible for all employment decisions and functions, including contracting, hiring, firing, establishing wage and hour requirements, disciplining, supervising and record keeping.
The Franchised Business shall, at all times, be under the direct supervision of Franchisee or an Internal Manager who has successfully completed Franchisor's training program. The Internal Manager shall devote sufficient efforts to the management of the day-to-day operations of the Franchised Business. Franchisee shall keep Franchisor informed, in writing, at all times of the identity of its current Internal Manager.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the Franchised Business must be under the direct supervision of an Internal Manager. This Internal Manager is required to devote their full-time and best efforts to managing the Franchised Business's operations. The Internal Manager does not need to have an equity interest in the franchise. However, they must complete the initial training program satisfactorily and sign both a Non-Disclosure Agreement and a Non-competition Agreement. Boulder Designs also recommends, but does not require, that someone with an equity interest in the franchise personally participate in the business and supervise operations.
The Internal Manager is designated in writing by the franchisee and approved in writing by Boulder Designs. They have primary responsibility for managing the day-to-day affairs of the Franchised Business, and may also be known as the "Designated Director". If the franchisee is an individual and not a business entity, the Internal Manager will be the franchisee.
The Internal Manager must meet employment criteria, maintain a neat appearance, and comply with any dress code that Boulder Designs requires. The franchisee is responsible for the Internal Managers' compensation and training, with the exception of the initial training provided under the franchise agreement. The franchisee must also keep Boulder Designs informed in writing of the identity of its current Internal Manager and ensure the Internal Manager devotes sufficient efforts to the management of the day-to-day operations of the franchise.