Under what conditions does Boulder Designs have the option to purchase the assets of the Franchised Business?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Whether the Territory is identified as a "Separate Territory" or a "Shared Territory," Franchisor has the right to provide or grant one or more other franchisees the right to provide products and services under the Marks in and outside the Territory. Franchisor also may establish, own or operate, and license others to establish, own or operate, or continue to own or operate, other businesses under other systems using other trademarks inside and outside of the Territory. Franchisor also may purchase or otherwise acquire the assets or controlling ownership of one or more businesses similar to the Franchised Business (and/or acquire franchise, license and/or similar agreements for such businesses), which may operate anywhere, including within the Territory. If Franchisor purchases or acquires franchises or licenses, Franchisor may, in its sole discretion, act as franchisor or licensor with respect to such franchisees or licensees wherever located, pursuant to the individual franchise or license agreement(s) between Franchisor and such franchisee(s) or licensee(s). If Franchisor purchases or acquires such businesses within the Territory which are not franchised or licensed, Franchisor may, in its sole discretion: (i) offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a BOULDER DESIGNS Business; or (ii) offer Franchisee the opportunity to operate such business(s) in partnership with Franchisor (or an Affiliate) under the business(s) existing trade name or a different trade name. Franchisor also may be acquired (regardless of the form of transaction) by any business, even if the other business operates, franchises and/or licenses Competitive Businesses within the Territory. Franchisor has the right to sell any products authorized for BOULDER DESIGNS Businesses using the Marks or other trademarks and commercial symbols through alternate channels of distribution, such as joint marketing with partner companies, Internet sales and catalog sales; provided, however, that no such sales shall be made to any Competitive Business within the Territory; and to engage in any activities not expressly forbidden by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Boulder Designs retains the right to purchase or acquire assets or controlling ownership of businesses similar to the franchised business. This includes acquiring franchise, license, or similar agreements for such businesses, which may operate anywhere, even within the franchisee's territory.
If Boulder Designs purchases or acquires franchises or licenses, it has the sole discretion to act as the franchisor or licensor with respect to those franchisees or licensees, regardless of their location. This would be done according to the individual franchise or license agreements between Boulder Designs and the respective franchisees or licensees.
In the event that Boulder Designs acquires similar businesses within the franchisee's territory that are not already franchised or licensed, Boulder Designs has the option to either offer to sell these businesses to the franchisee or to a third party at fair market value, to be operated as a Boulder Designs business. Alternatively, Boulder Designs can offer the franchisee the opportunity to operate these businesses in partnership with Boulder Designs or an affiliate, under the existing trade name or a different one. This clause gives Boulder Designs considerable flexibility in managing competition and expansion within existing territories.