Is Boulder Designs aware of any pending litigation involving the trademarks?

According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs states that they are not aware of any pending or currently effective material determinations from the USPTO (U.S. Patent and Trademark Office), the trademark trial and appeal board, the trademark administrator of any state, or any court. Boulder Designs also states that there is no pending infringement, opposition, cancellation, or material litigation involving the Marks. Additionally, Boulder Designs is not aware of any infringing or prior superior uses that could materially affect the use of the Marks in any state where a Franchised Business is to be located.

This statement provides some assurance to a prospective Boulder Designs franchisee that the trademarks are not currently subject to any known legal challenges that could impact their use of the marks in their business. However, it is important to note that this statement only reflects the current knowledge of Boulder Designs and does not guarantee that future challenges will not arise.

It is typical for franchisors to address trademark protection and potential litigation in their FDDs, as the strength and security of the brand's trademarks are crucial to the success of the franchise system. Franchisees rely on the brand's trademarks to attract customers and build goodwill, so any legal challenges to those trademarks could have a significant impact on their business. Boulder Designs also states that Mogavero Investments has granted them a license to use and sublicense the marks, dated December 1, 2017, for a term of 99 years. The license agreement may be terminated under certain conditions, such as insolvency or breach of duties, but Mogavero Investments must honor all franchise agreements, including the right to renew, even if the license agreement is terminated.

Boulder Designs also outlines the franchisee's responsibilities regarding the trademarks. Franchisees must notify Boulder Designs of any apparent infringement or challenges to the use of the marks and allow Boulder Designs to control any settlement or proceeding concerning the marks. Franchisees are also prohibited from using the marks in any unauthorized manner or contesting the validity or ownership of the marks. These provisions are common in franchise agreements to protect the integrity and value of the brand's trademarks.