Who benefits from the goodwill established through the franchisee's use of the Boulder Designs trademarks?

According to Boulder Designs's 2025 Franchise Disclosure Document, the franchisor benefits from the goodwill established through the franchisee's use of the Boulder Designs trademarks. The FDD states that all usage of the marks by the franchisee and any goodwill established through this usage will exclusively benefit Boulder Designs.

This means that while franchisees are granted a nonexclusive right to use the Boulder Designs trademarks in the operation of their franchised business, they do not gain any ownership or enduring benefit from the brand recognition and positive reputation they help create. Boulder Designs retains all rights to the trademarks and the goodwill associated with them. Franchisees must adhere to Boulder Designs's standards, operating procedures, and specifications when using the marks.

Any unauthorized use of the trademarks by a franchisee is considered a breach of the Franchise Agreement and an infringement of Boulder Designs's rights. Franchisees are prohibited from contesting the validity or ownership of the marks, even those licensed after the Franchise Agreement is signed, and they cannot assist others in doing so. This underscores that the value created through the use of the trademarks ultimately accrues to the benefit of Boulder Designs, not the individual franchisee.