What statement must be endorsed on the stock certificates of the Controlled Entity for a Boulder Designs franchise?

According to the 2025 Boulder Designs Franchise Disclosure Document, if a franchisee is a business entity, they must ensure that all stock certificates or ownership interest certificates are conspicuously endorsed with a statement, in a form satisfactory to Boulder Designs. This statement should indicate that the ownership interest is subject to all restrictions on transfers and assignments as outlined in the franchise agreement.

This requirement ensures that Boulder Designs maintains control over who can own or transfer ownership in a franchise. By having this endorsement on the stock certificates, any potential buyer is immediately aware of the restrictions, preventing unauthorized transfers that could violate the franchise agreement. This protects Boulder Designs' interests and ensures that all franchisees meet their standards.

For a prospective Boulder Designs franchisee, this means that if they choose to operate their franchise through a corporation, LLC, or other business entity, they will need to work with Boulder Designs to create an acceptable endorsement for their ownership certificates. This is a necessary step before opening the franchise and commencing business operations. Failing to comply with this requirement could delay the opening or even lead to termination of the franchise agreement.