What conditions must a Boulder Designs franchisee meet to be protected against claims of infringement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
We will protect you against claims of infringement or unfair competition arising from your use of any Marks provided (a) you immediately notify us of any apparent infringement of, or challenge or claim to you use of any Marks, (b) you are in complete compliance with your Franchise Agreement; (c) you allow us to take whatever action we deem appropriate in these situations. This means we have exclusive control over any settlement or proceeding concerning any Mark; and (d) you agree to be a witness in any legal, mediation, or arbitration proceeding on our behalf. You must take any actions that, in the opinion of our counsel, may be advisable to protect and maintain our interests in any proceeding or to otherwise protect and maintain our interests in the Marks. You may not communicate with any person other than us and our counsel regarding any infringements, challenges or claims, however, you may communicate with your own counsel at your own expense.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, Boulder Designs will protect its franchisees against claims of infringement or unfair competition arising from the use of any provided marks if the franchisee meets certain conditions.
First, the franchisee must immediately notify Boulder Designs of any apparent infringement, challenge, or claim regarding the use of any marks. Second, the franchisee must be in complete compliance with the Franchise Agreement. Third, the franchisee must allow Boulder Designs to take whatever action it deems appropriate in these situations, which means Boulder Designs has exclusive control over any settlement or proceeding concerning any mark. Finally, the franchisee must agree to be a witness in any legal, mediation, or arbitration proceeding on Boulder Designs's behalf and take any actions that Boulder Designs's counsel deems advisable to protect and maintain their interests in any proceeding or to otherwise protect and maintain their interests in the Marks. The franchisee may not communicate with any person other than Boulder Designs and its counsel regarding any infringements, challenges or claims; however, they may communicate with their own counsel at their own expense.
These conditions are fairly standard in franchising. Franchisors typically retain control over trademark-related legal matters to ensure consistent brand protection and legal strategy. Franchisees are generally expected to cooperate fully in these matters, as the strength and value of the brand's trademarks benefit all franchisees in the system.
A prospective Boulder Designs franchisee should carefully review the Franchise Agreement to fully understand their obligations regarding trademark protection and the potential costs and responsibilities involved in the event of an infringement claim.