What restrictions are placed on Boulder Designs regarding soliciting or hiring its own employees in Washington?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
will comply with all of the provisions contained in Article 18 of the Franchise Agreement concerning the assignment of my interests in the Franchisee.
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- While I am an "Owner" of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), I will not:
- 6.1 divert or attempt to divert any present or prospective customer of any BOULDER DESIGNS franchises to any competitor or do anything to harm the goodwill associated with the Marks and the System;
- 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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees operating in Washington are subject to certain restrictions regarding soliciting or hiring employees. Specifically, Boulder Designs franchisees cannot employ or seek to employ any person who is or has been within the previous 30 days employed by Boulder Designs or an affiliate of Boulder Designs as a salaried managerial employee, or induce such person to leave his or her employment. This restriction applies while the franchisee is an owner and extends to any location within the United States or any other country where Boulder Designs or its affiliates have used, sought registration of, or registered their marks.
After the franchisee ceases to be an owner, this restriction continues for two years, applying to any location within the territory or market area of another business operating under the Boulder Designs system. However, if this two-year restrictive period is deemed unenforceable under applicable law as an unreasonable restraint of trade, it is modified to prohibit the franchisee from soliciting or providing services to any client previously serviced by the franchised business during that two-year period. This restriction is tolled during any period of noncompliance.
However, Boulder Designs franchisees are not prohibited from soliciting or hiring other Boulder Designs franchisee's employees. If a franchisee hires another Boulder Designs franchisee's employee who has attended Boulder Designs' training within 12 months of the hire date, the franchisee must pay the other franchisee the then-current training fee of Boulder Designs plus the other franchisee's actual costs for sending its employee to training, including travel costs, lodging, wages, and food. This ensures that franchisees are compensated for their investment in training employees who are subsequently hired by another franchisee within a short period.