Does Boulder Designs have the right to reduce Shared Territory rights?

According to Boulder Designs' 2025 Franchise Disclosure Document, if a franchisee acquires rights for a Shared Territory, Boulder Designs reserves the right to reduce those Shared Territory rights. This reduction would be proportional to the population of the larger Territory. This means that while a franchisee may initially be granted rights to a certain geographic area within a Shared Territory, Boulder Designs can adjust those rights based on the overall population size of the territory.

This is an important consideration for prospective franchisees because it introduces an element of uncertainty regarding the long-term scope of their territory. While the franchisee may initially expect to have access to a certain customer base, Boulder Designs retains the power to reduce that access, potentially impacting the franchisee's revenue potential. This is different from a Separate Territory, where Boulder Designs will not grant anyone else the right to operate a Boulder Designs business within the territory, as long as the franchisee is compliant with the Franchise Agreement.

It is crucial for potential Boulder Designs franchisees to understand the implications of operating within a Shared Territory versus a Separate Territory. The possibility of territory reduction adds a layer of risk that must be carefully evaluated. Prospective franchisees should inquire about the specific criteria Boulder Designs uses to determine when and how Shared Territory rights will be reduced, as well as historical examples of such reductions. Understanding these factors will help franchisees make informed decisions about the potential risks and rewards of investing in a Boulder Designs franchise.