Under what grounds can a Boulder Designs franchisee terminate the franchise agreement?

According to Boulder Designs' 2025 Franchise Disclosure Document, the grounds for a franchisee to terminate the franchise agreement depend on the state where the franchise operates. For instance, in New York, the franchisee may terminate the agreement on any grounds available by law. This suggests that New York franchisees have broader termination rights compared to the standard terms outlined in the franchise agreement, as state law supersedes the agreement.

In general, franchise agreements often specify conditions under which either the franchisor or franchisee can terminate the agreement. These conditions typically include breaches of contract, failure to meet performance standards, or other significant violations of the agreement's terms. However, the FDD indicates that specific state laws can modify these termination rights. For example, the standard choice of law provision, which usually dictates that Texas law governs the agreement, may not apply if it conflicts with state-specific franchise laws.

Prospective Boulder Designs franchisees should carefully review the state-specific addenda in Exhibit I of the FDD to understand their termination rights fully. They should also consult with a franchise attorney to ensure they are aware of all applicable laws and regulations in their state. This is particularly important in states like California, Illinois, Indiana and New York, where franchise laws provide additional protections and may override certain provisions of the franchise agreement.