Under the Boulder Designs Franchise Agreement, who is released from claims by the franchisee?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
franchisee without the payment of any fee or other cost requirement, provided that, said franchisee meets Landlord's reasonable financial qualifications. Landlord shall not unreasonably withhold consent to such assignment. Thereafter, Franchisor shall be released from any and all further liabilities under the Lease. The parties agree to execute any commercially reasonable documents in furtherance of this section.
(f) Tenant will not assign the Lease or renew or extend the term thereof without the prior written consent of Franchisor, nor shall Landlord and Tenant amend or otherwise modify the Lease in any manner that could materially affect any of the foregoing requirements without the prior written consent of Franchisor.
(g) Franchisor shall have the right to enter the Premises to make any modification or alteration necessary to protect the Boulder Designs Franchising, LLC System and Marks (including, without limitation, remove all signs, advertising materials, displays, fixtures, proprietary equipment and inventory, and any other items which display the Marks or are indicative of Boulder Designs Franchising, LLC trade dress) or to cure any default under the Franchise Agreement or under the Lease, without being guilty of trespass or any other crime or tort.
Landlord shall not be responsible for any expenses or damages arising from any such action by Franchisor.
Tenant hereby releases, acquits, and discharges Franchisor and Landlord, their respective subsidiaries, affiliates, successors, and assigns and the officers, directors, shareholders, partners, employees, agents, and representatives of each of them, from any and all claims, demands, accounts, actions, and causes of action, known or unknown, vested or contingent, which any of them may have, ever had, now has, or may hereafter have by reason of any event, transaction, or circumstance arising out of or relating to the exercise of Franchisor's rights pursuant to the Addendum.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, under specific circumstances, both the Franchisor and the Landlord can be released from claims made by the franchisee.
Specifically, if the franchisee seeks to assign their lease to another franchisee and the Landlord reasonably approves the new franchisee based on financial qualifications, the Franchisor is released from any further liabilities under the lease. This encourages lease assignment to qualified franchisees and limits the Franchisor's long-term liability related to the lease agreement.
Additionally, the Tenant (franchisee) releases the Franchisor and Landlord, including their respective subsidiaries, affiliates, successors, assigns, officers, directors, shareholders, partners, employees, agents, and representatives, from any claims arising from the Franchisor's exercise of rights under the lease addendum. This broad release protects the Franchisor and Landlord from potential liabilities related to modifications or alterations made to protect the Boulder Designs system and marks, or to cure any default under the Franchise Agreement or the Lease.