Under the Boulder Designs franchise agreement, which article covers site selection and acquisition/lease obligations?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
ARTICLE 5 - APPROVED LOCATION
Section 5.1 Selection of Site
Franchisee may choose to operate the Franchised Business out of a private residence or commercial business office, both of which must be located in the Franchisee's Territory as defined on the Key Terms page or as otherwise identified in Exhibit 1, as attached to this Agreement as of the Effective Date. In the event Franchisee chooses not to operate the Franchised Business out of the Franchisee's owners' home, Franchisee shall promptly select a site for the Franchised Business and shall notify Franchisor of such selection by submitting Franchisor's Site Selection form with all supporting data and attachments. If Franchisor approves such selection, the site shall be designated as the Approved Location. If Franchisor does not approve of such selection, Franchisee shall select and notify Franchisor of new sites until Franchisor approves a site for the Franchised Business. Franchisor shall provide Franchisee with general guidelines to assist Franchisee in selecting a site suitable for the Approved Location. Franchisor has the right to approve or disapprove a proposed location based on such factors as it deems appropriate, including, without limitation: the condition of the premises; demographics of the surrounding area; proximity to other BOULDER DESIGNS Businesses and competitors; lease requirements; and overall suitability. Franchisor shall notify Franchisee of its approval or disapproval of a proposed site within 30 calendar days after Franchisor receives all information submitted from Franchisee. Franchisor will not unreasonably withhold approval; however, if Franchisor and Franchisee cannot agree on a location for the Franchised Business, Franchisor may in its sole discretion allow more time for site selection or terminate the Franchise Agreement. If the Franchise Agreement is terminated Franchisee is not entitled to any refund of the initial franchise fee or other deposits paid to Franchisor. If the Franchisor fails to respond in writing to the Selection of Site request within 45 calendar days, the site is deemed approved if the Site is in the Franchisee's Territory. If operating from Franchisee's home the site will be deemed automatically approved upon submission to Franchisor, provided the site is located within the Franchisee's Territory.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Article 5 of the franchise agreement, titled "Approved Location," outlines the site selection process. Section 5.1 specifically addresses the selection of the site for the Boulder Designs franchise.
This section allows a franchisee to operate from a private residence or a commercial business office, provided it's within their designated territory. If not operating from home, the franchisee must submit a Site Selection form to Boulder Designs for approval. Boulder Designs has the right to approve or disapprove the proposed location based on factors like the condition of the premises, demographics, proximity to competitors, lease requirements, and overall suitability.
Boulder Designs will notify the franchisee of their decision within 30 calendar days of receiving the required information. Failure to respond within 45 calendar days results in the site being deemed approved, assuming it's within the franchisee's territory. If operating from home, the site is automatically approved upon submission, provided it is within the franchisee's territory. This article is important for prospective franchisees as it details the process and criteria Boulder Designs uses for approving the location of the franchise, which can significantly impact the business's success.