What right does Boulder Designs have if a franchisee fails to comply with post-termination requirements?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided herein, upon termination and non-renewal or expiration, this Agreement and all rights granted herein to Franchisee shall terminate and Franchisee shall:
i. immediately cease to operate the Franchised Business, shutter any office to the public, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or Former Franchisee of Franchisor;
ii. deliver to Franchisor, all information, including any contracts, e-mail transmissions, written memorandums, customer sheets, or any other written or electronic data regarding customer lists or marketing efforts;
iii. refrain from taking any action to reduce the goodwill of Franchisee's Customers or potential Customers, towards Franchisor, other Franchisees or any other aspect of the System;
iv. cease to use the Confidential Information, the System and the Marks including, without limitation, all signs, slogans, symbols, logos, advertising materials, stationery, forms and any other items which display or are associated with the Marks;
v. immediately take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any fictitious or assumed name or equivalent registration filed with state, city or county authorities which contains the name "Boulder Designs" or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five days after termination or expiration of this Agreement;
vi. pay all sums owing, after the Effective Date of Termination or Expiration of this Agreement through the date that Franchisee completes all post termination obligations required under this Agreement, to Franchisor, and any Affiliate, which may include, but not be limited to, all damages, liquidated damages, costs and expenses, unpaid Royalty Fees, Marketing Fee, Technology Fee, or any other amounts due to Franchisor or any Affiliate within five (5) days after Termination or expiration of this Agreement or the date on which Franchisee completes all post-termination obligations required under this Agreement, whichever occurs first;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee is obligated to take certain actions. These include immediately ceasing operation of the Franchised Business, shuttering any office to the public, and refraining from representing themselves as a current or former franchisee of Boulder Designs. The franchisee must also deliver all information, including contracts, emails, customer sheets, and any other written or electronic data regarding customer lists or marketing efforts, to Boulder Designs.
Additionally, the franchisee must avoid any actions that could reduce the goodwill of customers or potential customers towards Boulder Designs, other franchisees, or any aspect of the system. They are required to stop using confidential information, the system, and the marks, including signs, slogans, logos, advertising materials, and stationery. The franchisee must also take necessary actions to cancel or assign any fictitious or assumed name registrations containing "Boulder Designs" or any other mark to Boulder Designs, providing evidence of compliance within five days of termination or expiration.
Furthermore, the franchisee is obligated to pay all sums owed to Boulder Designs and its affiliates from the effective date of termination through the date all post-termination obligations are met. This may include damages, liquidated damages, costs, expenses, unpaid royalty fees, marketing fees, technology fees, or any other amounts due. These payments must be made within five days after termination or expiration, or the date on which the franchisee completes all post-termination obligations, whichever comes first. Failure to comply with these post-termination requirements could result in legal action by Boulder Designs to enforce these provisions and recover any losses incurred as a result of the franchisee's non-compliance.