Under what conditions can the Franchisor intervene in customer complaints for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the quality of customer service, and every detail of appearance and demeanor of Franchisee and its employees, is material to protect the reputation and goodwill of the Marks and this Agreement and the relationship created hereby. Therefore, Franchisee shall endeavor to maintain and
require from its employees and contracted personnel, if applicable, high standards of quality and service in the operation of the Franchised Business. Franchisee shall at all times give prompt, courteous and efficient service to customers of the Franchised Business. Franchisee shall immediately resolve any customer complaints regarding the quality of service of the Franchised Business or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use his/her best efforts to resolve the customer complaints as soon as practicable and shall, whenever feasible, give the customer the benefit of the doubt. The Franchised Business shall in all dealings with its customers, vendors and the general public, adhere to the highest standards of honesty, fair dealing and ethical conduct. If Franchisor, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if Franchisor, in its sole discretion, believes that Franchisee has failed to adequately address or resolve any customer complaints, Franchisor may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Franchisor's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay to Franchisor immediately on demand. Franchisor has the right to terminate this Agreement for violation of this Section.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the franchisor can intervene in customer complaints under specific circumstances. The franchisee is expected to resolve customer complaints promptly and efficiently, giving the customer the benefit of the doubt whenever feasible. The franchisee must try to resolve complaints immediately, and if that's not possible, use their best efforts to resolve them as soon as practical.
However, Boulder Designs, in its sole discretion, can step in if it determines that intervention is necessary or desirable to protect the System or the goodwill associated with it. This also applies if Boulder Designs believes that the franchisee has failed to adequately address or resolve any customer complaints.
In the event of intervention, Boulder Designs can resolve the complaints without the franchisee's consent and charge the franchisee an amount sufficient to cover the franchisor's reasonable costs and expenses in resolving the complaints. The franchisee is then obligated to pay this amount to Boulder Designs immediately upon demand. Failure to adhere to these customer service standards and complaint resolution procedures can result in the termination of the franchise agreement.