Are there specific requirements for a Boulder Designs franchisee to renew or extend their franchise agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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THE FRANCHISE RELATIONSHIP
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. |
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, the franchise agreement has an initial term of 10 years, with an option to renew for an additional 10-year term if certain conditions are met. The specific conditions for renewal are not detailed in the provided excerpt, but Section 4.2 of the Franchise Agreement outlines these requirements.
Prospective franchisees should carefully review Section 4.2 of the Franchise Agreement to understand the conditions required for renewal. This includes understanding any performance metrics, required upgrades or renovations, and any fees associated with the renewal process. Knowing these conditions upfront allows a franchisee to plan and prepare for meeting these requirements to secure the additional 10-year term.
It is also important to note that the FDD mentions that the Franchise Agreement requires franchisees to sign a general release of claims upon renewal. Franchisees should be aware of the implications of signing such a release, as it may affect their rights. Franchisees in California should be aware that California Corporations Code Section 31512 voids a prospective waiver of their rights under the Franchise Relations Act (Business and Professions Code Section 20000 – 20043).
Therefore, a prospective Boulder Designs franchisee should seek legal counsel to fully understand the implications of the renewal terms and the general release before signing the Franchise Agreement.