Under what conditions can Boulder Designs suspend its performance of obligations to a franchisee?

Based on the 2025 Franchise Disclosure Document, Boulder Designs retains the authority to modify its obligations under specific articles of the franchise agreement. Specifically, Boulder Designs can reduce the scope of its obligations under the covenants contained in Articles 7 and 17 of the Franchise Agreement. This modification can be made unilaterally, meaning without the franchisee's consent.

This right is effective immediately upon providing notice to the franchisee. This means Boulder Designs can change the extent of their responsibilities outlined in those articles simply by informing the franchisee of the change.

For a prospective franchisee, this clause indicates a degree of flexibility retained by Boulder Designs. It is important to carefully review Articles 7 and 17 of the Franchise Agreement to understand the obligations that are subject to change. A potential franchisee should consider the implications of these potential changes and how they might affect their business operations and relationship with the franchisor. It would be prudent to seek legal counsel to fully understand the scope of these provisions and their potential impact.