Under what condition does Boulder Designs Franchising, LLC have liability under the lease?

According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs Franchising, LLC is not a party to the lease agreement between the franchisee (Tenant) and the landlord. Therefore, Boulder Designs has no liability under the lease unless the lease is assigned to, and assumed by, Boulder Designs.

However, Boulder Designs does have the right, but not the obligation, to cure a franchisee's default on the lease. If the franchisee fails to cure the default, the landlord must provide Boulder Designs with written notice, and Boulder Designs then has the option to cure the default within 15 days. Curing the default does not mean that Boulder Designs is assuming the lease.

Boulder Designs also has the option to perform the lease terms on behalf of the franchisee for up to six months or to assume the lease entirely for the remainder of its term, including any renewal options. If Boulder Designs chooses to assume the lease, an agreement must be made between Boulder Designs and the landlord to document the assumption. If Boulder Designs grants the franchise to another franchisee, the landlord must allow the assignment of the lease to the new franchisee, provided the new franchisee meets the landlord's financial qualifications.