Who is the third-party beneficiary of the non-disclosure and non-competition agreements for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain individuals with access to Trade Secrets or other Confidential Information, including the owners, directors and any managers of the business (and members of their immediate families and collaterals), are required to sign nondisclosure and non-competition agreements in a form the same as or similar to the Non-Disclosure and Non-Competition Agreement attached to the Franchise Agreement. We will be a third-party beneficiary with the independent right to enforce the agreements.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, Boulder Designs will be the third-party beneficiary of the non-disclosure and non-competition agreements. These agreements are signed by individuals with access to trade secrets or other confidential information, including owners, directors, managers, and their immediate families.
This means that Boulder Designs has the independent right to enforce these agreements, protecting its confidential information and trade secrets. This is a common practice in franchising to safeguard the franchisor's proprietary information and prevent unfair competition.
For a prospective Boulder Designs franchisee, this indicates that the franchisor takes the protection of its intellectual property seriously. Franchisees should ensure that all individuals associated with their business who have access to confidential information, including family members, understand and comply with the non-disclosure and non-competition agreements. Failure to enforce these agreements could expose the franchisee to liability.