factual

After termination or expiration of the Boulder Designs franchise agreement, what must a franchisee do regarding representing themselves as a franchisee?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Except as otherwise provided herein, upon termination and non-renewal or expiration, this Agreement and all rights granted herein to Franchisee shall terminate and Franchisee shall:

  • i. immediately cease to operate the Franchised Business, shutter any office to the public, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or Former Franchisee of Franchisor;

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately cease operating the franchised business and close any office open to the public. The franchisee is prohibited from representing themselves, directly or indirectly, to the public as a current or former Boulder Designs franchisee. This is a standard practice in franchising, ensuring that the brand's reputation and customer perception remain consistent and are not diluted by former franchisees.

In addition to ceasing operations and representation, the franchisee must return all information, including contracts, emails, customer lists, and marketing data, to Boulder Designs. This measure aims to protect the franchisor's confidential information and trade secrets. The franchisee must also refrain from any actions that could harm the goodwill of customers or potential customers toward Boulder Designs, its other franchisees, or any aspect of the Boulder Designs system.

Furthermore, the franchisee must stop using all confidential information, the Boulder Designs system, and the brand's trademarks, including signs, slogans, logos, advertising materials, and stationery. The franchisee is also required to take necessary actions to cancel or assign any assumed name registrations containing "Boulder Designs" or any other mark to the franchisor. Compliance with these obligations must be demonstrated to Boulder Designs within five days after termination or expiration. These measures collectively ensure a clean break and protect Boulder Designs' brand and operational integrity.

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.