Is Boulder Designs responsible for injuries resulting from the operation of a franchisee's Boulder Designs business?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
s the right to observe Franchisee and its employees during the operation of the Franchised Business and to interview and survey (whether in person or by mail) clients and employees and to photograph or videotape the operations. You expressly agree that these visits will not imply that you are in compliance with your obligations under this Agreement or under the law or that we waive our right to require strict compliance with your obligations under this Agreement or the Manual. Furthermore, such visits will not create any responsibility or liability in our part. If you request that we make additional visits to your BOULDER DESIGNS franchise, you will pay the fees we establish for such visits.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs' inspections of a franchisee's business do not create any responsibility or liability on their part. Specifically, Section 6.6 states that visits to a franchisee's location will not imply compliance with obligations nor waive the right to require strict compliance. More importantly, the section explicitly states that such visits will not create any responsibility or liability for Boulder Designs. This suggests that Boulder Designs is not liable for issues arising from the franchisee's operation.
Furthermore, the FDD states that Boulder Designs' specifications do not constitute a warranty or representation regarding quality, safety, suitability, or fitness for a particular purpose. Boulder Designs will not be liable to franchisees or others due to the designation of standards for the operation of the franchised business. This reinforces the idea that Boulder Designs aims to distance itself from liability related to the operation of the franchise.
In the broader context of franchising, it is common for franchisors to establish standards and guidelines for their franchisees. However, the responsibility for day-to-day operations and adherence to safety standards typically falls on the franchisee. Boulder Designs appears to follow this model, emphasizing the franchisee's role in maintaining standards and resolving customer issues while limiting its own liability.