Does the restriction on owning a Competitive Business apply regardless of where the Competitive Business is located for a Boulder Designs franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the 2025 Boulder Designs Franchise Disclosure Document, the restriction on owning a competitive business applies to any location within the United States, its territories, or commonwealths, or any other country, province, state, or geographic area in which Boulder Designs 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. This restriction is in place while the individual is an owner.
After ceasing to be an owner, or after the termination or expiration of the Franchise Agreement, this restriction applies for two years to any location that is, or is intended to be, located in the Territory or market area of any other business operating under the Boulder Designs System and Marks. If the two-year restrictive period is deemed unenforceable under applicable law as an unreasonable restraint of trade, the restriction is modified to prohibit soliciting or providing services to any client previously serviced by the Franchised Business during the two-year period.
This non-compete agreement ensures that franchisees do not directly compete with Boulder Designs during the term of their agreement and for a limited time afterward, protecting the brand's market presence and confidential information. The agreement is designed to be enforceable, with a clause that modifies the restriction if the original terms are deemed unreasonable under applicable law. The two-year restriction will be tolled during any period of noncompliance.