Under what condition will 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.

Boulder Designs has the option to assume the lease under certain conditions, such as curing a default by the franchisee or upon termination of the Franchise Agreement. If Boulder Designs cures a default by the franchisee, or notifies the landlord that the Franchise Agreement has been terminated, the landlord agrees to assign any rights under the lease to Boulder Designs, allowing Boulder Designs to remove or evict the franchisee from the premises.

Furthermore, Boulder Designs has the right to perform the lease terms on behalf of the franchisee for up to six months or to fully assume the lease for the remainder of its term, including renewal options. If Boulder Designs chooses to assume the lease, a formal agreement between the landlord and Boulder Designs will be created to document the assumption. Only upon this documented assumption of the lease does Boulder Designs incur liability under its terms.