factual

What is the restriction on employing individuals previously employed by Boulder Designs Franchisor or its affiliates?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.2 employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or

  • 6.3 own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with, any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise operated pursuant to a valid franchise agreement with Franchisor.

This restriction shall apply, while I am an Owner, to any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Franchisor or its Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks.

It will apply for two years after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first) to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks.

If the two-year restrictive period would be unenforceable under applicable law as an unreasonable restraint of trade, then such restriction is modified to prohibit you and each Owner, as applicable, from soliciting or providing services, during said two-year period, to any client previously serviced by the Franchised Business.

This two-year restriction will be tolled during any period of my noncompliance.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee is restricted from employing or attempting to employ anyone who is or has been employed by Boulder Designs or its affiliates as a salaried managerial employee within the previous 30 days. Additionally, franchisees are prohibited from inducing such individuals to leave their employment with Boulder Designs.

This restriction applies while the franchisee is an owner, within the United States, its territories, or any other country where Boulder Designs or its affiliates have used, sought registration of, or registered their trademarks, or operate or license businesses under similar marks. After the franchisee ceases to be an owner, this restriction extends for two years to any location within the territory or market area of another business operating under the Boulder Designs system.

However, if the two-year restrictive period is deemed unenforceable under applicable law as an unreasonable restraint of trade, the restriction is modified. In such cases, the franchisee and each owner are prohibited from soliciting or providing services to any client previously serviced by the franchised business during the two-year period. The two-year restriction will be suspended during any period of noncompliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.