Are there any exceptions to what is considered a 'Competitive Business' for a Boulder Designs franchisee?

According to Boulder Designs' 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any business that offers or provides engraved concrete signage or concrete landscaping products, or other similar products or services to those sold by Boulder Designs franchises. This definition also includes businesses that could potentially use Boulder Designs' trade secrets or confidential information to the detriment of the franchisor, its affiliates, or other franchisees. However, there are specific exceptions to this definition.

The term 'Competitive Business' does not apply to two specific scenarios. First, any business operated by a franchisee under a franchise agreement with Boulder Designs is exempt. This means a franchisee can operate multiple Boulder Designs locations without violating the non-competition clause. Second, the non-competition clause does not apply to any business operated by a publicly-held entity in which the franchisee owns less than a 5% legal or beneficial interest. This allows a franchisee to invest in larger, publicly-traded companies that may have some overlapping business activities without being considered a competitive business.

These exceptions provide some flexibility for Boulder Designs franchisees. They can operate multiple franchises under the Boulder Designs system and make minor investments in publicly traded companies without violating the non-competition agreement. However, franchisees should be aware that these are the only explicitly stated exceptions, and any other business activities that compete with Boulder Designs could be considered a breach of the franchise agreement.