What is the scope of the license granted to a Boulder Designs franchisee, specifically regarding the number of Boulder Designs businesses they are authorized to operate?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor hereby grants to Franchisee, and Franchisee undertakes and accepts, upon the terms and conditions herein contained, a revocable, limited license to operate one BOULDER DESIGNS Business using the System and Marks.
Section 2.2 Approved Location
Subject to all of the terms and conditions herein, Franchisor grants to Franchisee the right and license to operate a Franchised Business using the System and the Marks at an approved location ("Approved Location") and solely within the Territory. Franchisee hereby accepts such right and license subject to such terms and conditions and undertakes to operate the Franchised Business and to use the System and Marks solely in connection therewith. If the Approved Location of the Franchised Business is not determined as of the Effective Date, then Franchisee shall have up to 30 days to propose a location to Franchisor for approval. If Franchisor does not deny Franchisee's proposed location within 30 calendar days, the location shall be deemed approved. If Franchisee receives a denial from Franchisor, Franchisee must submit a new location until approved. When the Approved Location is determined, its description shall be identified on the Key Terms Page. Franchisee must only operate the approved Boulder Designs Business from the approved location and no other business.
Section 2.3 Sub-franchising/Agents
Franchisee shall not sublicense the use of the System or Marks to any person or entity to perform any part of Franchisee's rights or obligations licensed herein, or to grant any person or entity the right to act as Franchisee's agent to perform any part of Franchisee's rights or obligations herein.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the franchise agreement grants the franchisee a limited license to operate only one Boulder Designs business. This license is specifically for the use of the Boulder Designs system and marks.
The license is further restricted to an approved location, which must be determined and approved by Boulder Designs. The franchisee is only authorized to operate the Boulder Designs business from this approved location and no other business. This means a franchisee cannot move the business without approval or operate multiple businesses under a single franchise agreement.
The agreement explicitly prohibits sub-franchising, meaning the franchisee cannot sublicense the rights granted to them to any other person or entity. This ensures that the franchisee is the only party authorized to operate the Boulder Designs business under the terms of the agreement. The franchisor also retains the right to grant other franchises in or outside the franchisee's territory.