What section of the Boulder Designs Franchise Agreement outlines the obligations for site selection and acquisition/lease?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 5 - APPROVED LOCATION
Section 5.1 Selection of Site
Franchisee may choose to operate the Franchised Business out of a private residence or commercial business office, both of which must be located in the Franchisee's Territory as defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. In the event Franchisee chooses not to operate the Franchised Business out of the Franchisee's owners' home, Franchisee shall promptly select a site for the Franchised Business and shall notify Franchisor of such selection by submitting Franchisor's Site Selection form with all supporting data and attachments. If Franchisor approves such selection, the site shall be designated as the Approved Location. If Franchisor does not approve of such selection, Franchisee shall select and notify Franchisor of new sites until Franchisor approves a site for the Franchised Business. Franchisor shall provide Franchisee with general guidelines to assist Franchisee in selecting a site suitable for the Approved Location. Franchisor has the right to approve or disapprove a proposed location based on such factors as it deems appropriate, including, without limitation: the condition of the premises; demographics of the surrounding area; proximity to other BOULDER DESIGNS Businesses and competitors; lease requirements; and overall suitability. Franchisor shall notify Franchisee of its approval or disapproval of a proposed site within 30 calendar days after Franchisor receives all information submitted from Franchisee. Franchisor will not unreasonably withhold approval; however, if Franchisor and Franchisee cannot agree on a location for the Franchised Business, Franchisor may in its sole discretion allow more time for site selection or terminate the Franchise Agreement. If the Franchise Agreement is terminated Franchisee is not entitled to any refund of the initial franchise fee or other deposits paid to Franchisor. If the Franchisor fails to respond in writing to the Selection of Site request within 45 calendar days, the site is deemed approved if the Site is in the Franchisee's Territory. If operating from Franchisee's home the site will be deemed automatically approved upon submission to Franchisor, provided the site is located within the Franchisee's Territory.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Article 5 of the Franchise Agreement, titled "Approved Location," details the obligations for site selection. Specifically, Section 5.1, also titled "Selection of Site," outlines the process the franchisee must follow to select a location for their Boulder Designs business.
This section states that the franchisee can operate from a private residence or commercial business office within their designated territory. If not operating from a home, the franchisee must promptly select a site and notify Boulder Designs using their Site Selection form. Boulder Designs has the right to approve or disapprove the proposed location based on factors like the condition of the premises, demographics, proximity to competitors, lease requirements, and overall suitability. Boulder Designs will provide general guidelines to assist in site selection.
Boulder Designs is required to notify the franchisee of their decision within 30 calendar days of receiving all necessary information. Failure to respond within 45 calendar days results in automatic approval, provided the site is within the franchisee's territory. However, if Boulder Designs and the franchisee cannot agree on a location, Boulder Designs may extend the selection period or terminate the Franchise Agreement, in which case the franchisee will not receive a refund of their initial franchise fee or other deposits.