factual

During the term of the Boulder Designs franchise agreement, are franchisees permitted to solicit employees of other Boulder Designs franchisees to work for a Competitive Business?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee is not prohibited from soliciting or hiring other BOULDER DESIGN franchisee's employees. If Franchisee employs another BOULDER DESIGN franchisee's employee who has attended Franchisor's training within 12 months of the hire date with Franchisee, Franchisee shall pay to the other franchisee the then-current training fee of Franchisor plus the other franchisee's actual costs for sending its employee to training, including but not limited to travel costs, lodging, wages, and food.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Boulder Designs Franchise Disclosure Document, franchisees are permitted to solicit or hire employees from other Boulder Designs franchises. However, if a franchisee hires an employee from another Boulder Designs franchise who has attended Boulder Designs' training within 12 months of being hired, the franchisee must pay the other franchisee the then-current training fee, as well as the actual costs incurred by the other franchisee for sending the employee to training. These costs include travel, lodging, wages, and food.

This policy allows franchisees to recruit talent from within the Boulder Designs system, but it also protects franchisees who have invested in training their employees. The fee reimbursement ensures that franchisees are compensated for their investment in training if their employees are hired by another franchisee shortly after completing the training program. This encourages franchisees to continue investing in employee training, which benefits the entire Boulder Designs system.

It is important to note that this policy only applies to employees who have attended Boulder Designs' training within the past 12 months. If an employee has not attended training recently, the hiring franchisee is not required to pay any fees to the former employer. Prospective franchisees should consider these potential costs when making hiring decisions and factor them into their budget. This policy aims to balance the free movement of labor within the Boulder Designs network with the need to protect franchisees' investments in employee development.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.