What constitutes misuse of the Marks by a Boulder Designs franchisee that could lead to termination?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
vernmental agency or Franchisee's noncompliance or less than full compliance with any applicable law, rule or regulation. Franchisee will provide Franchisor with any information Franchisor requests, within 72 hours of request, about the progress and outcome of events.
Section 13.8 Compliance with Good Business Practices
Franchisee acknowledges that the quality of customer service, and every detail of appearance and demeanor of Franchisee and its employees, is material to protect the reputation and goodwill of the Marks and this Agreement and the relationship created hereby. Therefore, Franchisee shall endeavor to maintain and
require from its employees and contracted personnel, if applicable, high standards of quality and service in the operation of the Franchised Business. Franchisee shall at all times give prompt, courteous and efficient service to customers of the Franchised Business. Franchisee shall immediately resolve any customer complaints regarding the quality of service of the Franchised Business or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use his/her best efforts to resolve the customer complaints as soon as practicable and shall, whenever feasible, give the customer the benefit of the doubt. The Franchised Business shall in all dealings with its customers, vendors and the general public, adhere to the highest standards of honesty, fair dealing and ethical conduct. If Franchisor, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if Franchisor, in its sole discretion, believes that Franchisee has failed to adequately address or resolve any customer complaints, Franchisor may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Franchisor's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay to Franchisor immediately on demand. Franchisor has the right to terminate this Agreement for violation of this Section.
Franchisee shall, in all dealings with the customers, suppliers, Franchisor and the public, adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee agrees to refrain from any business or advertising practice which may be injurious to Franchisor's business and the goodwill associated with the Proprietary Marks and other Boulder Designs Businesses. Franchisee and Franchisee's employees shall be required to adhere to all aspects of this Section. Failure to adhere to this section shall result in a default of this Agreement. Franchisor's specifications do not constitute a warranty or representation, express or implied, as to quality, safety, suitability, fitness for a particular purpose or any manner. We will not be liable to you or others on account of the designation of standards for the operation of the Franchised Business under the System.
Franchisee and Franchisee's owners agree to comply, and to assist Franchisor to the fullest extent possible in our efforts to comply with Anti-Terrorism Laws (defined below). In connection with that compliance, Franchisee and Franchisee's owners certify, represent, and warrant that none of Franchisee's property or interests is subject to being blocked under, and that Franchisee and Franchisee's owners otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT ACT, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by Franchisee or Franchisee's owners, or any blocking of Franchisee or Franchisee owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 17.2 below.
Section 13.9 Reserved
Section 13.10 Credit Cards
Franchisee shall honor all credit cards approved by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, a franchisee's failure to maintain high standards of quality and service, honesty, integrity, fair dealing, and ethical conduct in all dealings with customers, suppliers, the franchisor, and the public can result in the termination of the Franchise Agreement. Boulder Designs emphasizes the importance of protecting the reputation and goodwill of its Marks through the franchisee's and their employees' appearance, demeanor, and customer service.
A Boulder Designs franchisee must promptly resolve customer complaints and make their best efforts to resolve complaints as soon as practicable, giving the customer the benefit of the doubt whenever feasible. The FDD states that Boulder Designs has the right to intervene and resolve customer complaints if the franchisee fails to do so adequately, charging the franchisee for the associated costs.
Furthermore, a Boulder Designs franchisee must operate the Franchised Business so that it is clearly identified and advertised as a "Boulder Designs" business. The franchisee must use the trademark "BOULDER DESIGNS" and other Marks in the exact manner prescribed by Boulder Designs on all signs, paper supplies, business cards, uniforms, advertising materials, technology platforms and other articles. The franchisee must also comply with all trademark, trade name, service mark, and copyright notice marking requirements and provide samples or photographs to Boulder Designs upon request.
Operating any other business and using any reproduction, counterfeit, copy or colorable imitation of the Marks, either in connection with such other business or the promotion thereof, that is likely to cause confusion, mistake or deception, or that is likely to dilute Boulder Designs's rights in the Marks is a misuse of the Marks. Additionally, utilizing any designation of origin, description or representation that falsely suggests or represents an association or connection with Boulder Designs is a misuse of the Marks.