What rights does Boulder Designs reserve regarding technology initiatives to enhance the franchise system?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the sole right to maintain Social Media sites and/or applications including, but not limited to: Twitter, Facebook, LinkedIn and other sites or applications that Franchisor may establish. Franchisor does not allow Franchisee to establish or utilize Social Media sites or applications for business purposes. Franchisee and Franchisee's employees do not have the right to utilize the Marks, any of the Trade Secrets, the Confidential Information, the common law copyrighted materials including the programs, photographs, program names, signage, promotional materials, Manual, training materials, Franchise Agreements, and/or any other documents, materials and items for the general ambiance and decor used in the operation of the System and the BOULDER DESIGNS Businesses on any Social Media sites and/or applications, even if made from Franchisee's personal Social Media account. Further, any representations from Franchisee or Franchisee's employees regarding Franchisee's profits or earnings made on any Social Media site and/or application, even if made from a personal Social Media account, is deemed a breach of Confidential Information under this Franchise Agreement.
Section 11.4 Directory Advertising
Franchisee is required to list and advertise the telephone number(s) and address (if applicable) for the Franchised Business in various online directories, as specified by Franchisor, such as Google and Facebook. Franchisee must be in the directory heading or category as specified by Franchisor.
Section 10.2 Modification of the System
Franchisee recognizes that from time to time, Franchisor may introduce, as part of the System, other methods or technology which require certain System modifications including, without limitation, the adoption and use of modified or substitute Marks, new computer hardware and software, equipment, signs or fixtures. Franchisee agrees to make all required upgrades and modifications at its expense as may be required by Franchisor. Franchisee agrees to comply with Franchisor's directions within a reasonable time after receiving notice of such changes. Franchisor is not required to reimburse Franchisee for any costs or expenses associated with making such trade or service mark changes, for any loss of revenue due to any modified or discontinued Mark, or for your expenses in promoting a modified or substitute trademark or service mark. Any other additional investment other than modification or substitution of Marks is required to be made in the last year of the initial term, Franchisee may avoid making the investment by providing notice of intent not to renew the Franchise Agreement unless the investment is in connection with a modification to the System required by law or court order.
Section 3.5 Technology Fee
Franchisee shall pay to Franchisor its then-current technology fee ("Technology Fee") on the first of every month, which is currently defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. Franchisor has the right to increase this fee at Franchisor's discretion upon providing Franchisee 30 days' notice of their intent to increase to the current monthly Technology Fee.
The Technology Fee will cover Franchisor's cost of providing BOULDER DESIGN franchisees technology and other technical resources, including, without limitation, certain internet resources, website, email, intranet address, software, and other technology to facilitate Franchisee's operation of the Franchised Business. The parties acknowledge and agree that the technological environment is rapidly changing and that it is difficult to anticipate the cost of developing, acquiring, implementing, and licensing Internet and communications technologies that may benefit franchisees of the System. Each calendar year, the Technology Fee shall increase automatically by an amount not to exceed 10% of the prior year's Technology Fee. Franchisee agrees to pay the Technology Fee according to the terms prescribed by the Franchisor.
In addition, Franchisor requires Franchisee to purchase, through an approved supplier, the approved point of sale system ("POS"). Franchisee will be responsible for any ongoing upgrades or updates to the POS, ongoing maintenance packages, and computer and software packages after installation. The computer system and/or POS for your Franchised Business will be dedicated to the operation of the Boulder Designs business and used for no other purpose.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs retains significant rights regarding technology and modifications to the franchise system. Boulder Designs has the sole right to maintain social media sites and applications and does not allow franchisees to establish or utilize social media sites for business purposes. Franchisees are also required to list and advertise the telephone number(s) and address for the Franchised Business in various online directories, as specified by Boulder Designs.
Boulder Designs may introduce new methods or technology requiring system modifications, including adopting modified trademarks, new computer hardware and software, equipment, signs, or fixtures. The franchisee is responsible for making all required upgrades and modifications at their own expense as required by Boulder Designs. Boulder Designs is not required to reimburse the franchisee for any costs or expenses associated with these changes, including loss of revenue due to modified trademarks.
Franchisees are obligated to pay a technology fee, which Boulder Designs has the right to increase with 30 days' notice. This fee covers the cost of providing franchisees with technology and technical resources, such as internet resources, website, email, intranet address, and software. The technology fee increases automatically each calendar year by an amount not to exceed 10% of the prior year's fee. Franchisees are also required to purchase an approved point of sale (POS) system through an approved supplier and are responsible for any ongoing upgrades, updates, and maintenance packages.
These stipulations mean that a Boulder Designs franchisee must be prepared to adopt and finance technology upgrades and modifications as directed by Boulder Designs. They must also adhere to Boulder Designs's social media policies and utilize approved technology systems. The financial burden of technology upgrades and the lack of control over social media presence could be significant considerations for potential franchisees.