Who is responsible for protecting a Boulder Designs franchise from E-Problems?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Computer systems are vulnerable in varying degrees to computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures and similar problems, and attacks by hackers and other unauthorized intruders ("E-Problems"). Franchisor does not guarantee that information or communication systems that Franchisor or others supply will not be vulnerable to E-Problems. It is Franchisee's responsibility to protect itself from E-Problems. Franchisee should also take reasonable steps to verify that its suppliers, third-party vendors, lenders, landlords, and governmental agencies on which it relies, have reasonable protection from E-Problems. This may include taking reasonable steps to secure Franchisee systems (including firewalls, password protection and anti-virus systems) and to provide backup systems.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisee is responsible for protecting their business from what the agreement terms "E-Problems." These E-Problems include computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures, attacks by hackers, and other unauthorized intruders. Boulder Designs does not guarantee that their information or communication systems will be free from these vulnerabilities.
To protect their business, Boulder Designs franchisees should take steps to secure their systems. These steps include implementing firewalls, password protection, and anti-virus systems, as well as providing backup systems. Franchisees are also advised to verify that their suppliers, third-party vendors, lenders, landlords, and governmental agencies have reasonable protection from E-Problems.
This allocation of responsibility means that a Boulder Designs franchisee must bear the costs and efforts associated with cybersecurity and data protection. This is a common practice in franchising, where franchisees often manage the day-to-day operational risks, including IT security. Prospective franchisees should factor in these potential costs when evaluating the overall investment and operational requirements of a Boulder Designs franchise.