Upon termination or non-renewal of the Boulder Designs franchise agreement, what must the franchisee immediately cease doing?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
bligations under the Franchise Agreement. No right or remedy which Franchisor may have (including termination) is exclusive of any other right or remedy provided under law or equity. Franchisor is free to pursue any rights and/or remedies available.
ARTICLE 17 - RIGHTS AND DUTIES UPON EXPIRATION OR TERMINATION
Section 17.1 Actions to be Taken
Except as otherwise provided herein, upon termination and non-renewal or expiration, this Agreement and all rights granted herein to Franchisee shall terminate and Franchisee shall:
- i. immediately cease to operate the Franchised Business, shutter any office to the public, and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or Former Franchisee of Franchisor;
- ii. deliver to Franchisor, all information, including any contracts, e-mail transmissions, written memorandums, customer sheets, or any other written or electronic data regarding customer lists or marketing efforts;
- iii. refrain from taking any action to reduce the goodwill of Franchisee's Customers or potential Customers, towards Franchisor, other Franchisees or any other aspect of the System;
- iv.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, upon termination or non-renewal of the franchise agreement, the franchisee must immediately cease certain activities. Specifically, the franchisee must stop operating the franchised business, close any public-facing office, and refrain from representing themselves as a current or former Boulder Designs franchisee.
This requirement ensures a clean break between the franchisee and the Boulder Designs brand, preventing potential confusion among customers and protecting the brand's reputation. It is a standard practice in franchising to require franchisees to discontinue operations and remove any association with the brand upon termination or non-renewal of the agreement.
In addition to ceasing operations and representation, the franchisee must also discontinue using Boulder Designs' confidential information, the System, and the Marks, including all signs, slogans, logos, advertising materials, and stationery associated with the brand. The franchisee must also take action to cancel or assign any assumed name registrations containing "Boulder Designs" or any other Mark to the franchisor. These measures are designed to prevent the franchisee from unfairly competing with Boulder Designs after the termination of the franchise agreement and to protect the franchisor's intellectual property rights.