After termination or expiration of the Boulder Designs franchise agreement, what specific activities are franchisees, their owners, and related parties prohibited from engaging in under the non-competition covenants?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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| r. Non-competition covenants after the franchise is terminated or expires | Section 17.2 | For three years after the termination or expiration of the Franchise Agreement, you, your owners (and members of their families and collaterals) and your officers, directors, executives or managers are prohibited from: owning or working for a business that offers or sells engraved concrete signage or concrete landscaping products or other products or services that are similar to those sold by the Franchised Business within 25 miles of the Approved Location or within the Territory (whichever is greater), and within 25 miles of any other BOULDER DESIGNS Businesses; or soliciting or influencing any consumers, employees or business associates of ours, our Affiliate(s) or any other franchisee to terminate or modify their business relationship with Us, our Affiliate(s) or any other franchisee. |
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| (Subject to state law) |
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving
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, after the franchise agreement is terminated or expires, certain restrictions apply to the franchisee, their owners, family members, and related parties. Specifically, for three years, these individuals are prohibited from owning or working for a business that offers or sells engraved concrete signage, concrete landscaping products, or similar products and services. This restriction applies within 25 miles of the approved Boulder Designs location or within the territory, whichever is greater, and also within 25 miles of any other Boulder Designs businesses.
Additionally, the non-compete agreement prevents these individuals from soliciting or influencing any consumers, employees, or business associates of Boulder Designs, its affiliates, or any other franchisee to terminate or modify their business relationship with Boulder Designs. This provision aims to protect Boulder Designs' customer base, workforce, and overall business network from being poached by a former franchisee or their associates.
It is important to note that the enforceability of non-competition covenants can vary by state law. The Boulder Designs FDD acknowledges that these covenants are subject to state law, meaning a franchisee's specific rights and obligations may depend on the laws of the state in which they operate. Prospective franchisees should consult with legal counsel to understand the specific implications of the non-compete agreement in their state.