During the term of the Boulder Designs franchise, are franchisees allowed to solicit employees of other franchisees to terminate their relationship with that franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| q. Non-competition covenants during the term of the franchise |
Sections 7.3 and 7.4 |
You, your owners (and members of their families and collaterals) and your officers, directors, executives, managers, and employees are prohibited from: attempting to divert any customer, employee or other business associate of ours, the Franchised Business, our Affiliate(s) or any other franchisee to a Competitive Business, or soliciting or attempting to induce any customer, employee or other business associate of ours, the Franchised Business, our Affiliate(s) or any other franchisee to terminate or modify their business relationship with Us, the Franchised Business, our Affiliate(s) or any other franchisee or causing injury or prejudice to the Marks or the System; owning or working for a Competitive Business. (Subject to state law) |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are prohibited from soliciting employees of other franchisees to terminate their relationship during the term of the franchise agreement. Specifically, Boulder Designs franchisees (including their owners, family members, officers, directors, executives, managers and employees) cannot attempt to induce any employee of Boulder Designs, its affiliates, or any other franchisee to terminate or modify their business relationship. This restriction is in place to protect the Boulder Designs system and prevent the disruption of business operations within the franchise network.
This non-solicitation clause is designed to maintain stability and prevent franchisees from poaching employees from one another, which could harm individual franchise locations and the overall brand. It ensures that franchisees focus on developing their own workforce rather than trying to recruit from existing Boulder Designs businesses. This restriction applies not only to direct solicitation but also to any attempts to indirectly influence an employee to leave their current position within the Boulder Designs system.
For a prospective Boulder Designs franchisee, this means they must be careful not to actively recruit or encourage employees of other franchisees to leave their jobs. Violating this provision could lead to a breach of the franchise agreement and potential legal consequences. Franchisees should focus on building a positive work environment and offering competitive compensation to attract and retain their own employees, rather than relying on poaching from other locations. This policy is fairly standard within franchising, as franchisors typically want to protect the stability of their network.