On what date did Boulder Designs file a lawsuit against Sanford and Red Art?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
rets.
Boulder v Sanford and Red Art (Case No. No. 21-0846-C26), in the District Court of McLennan County, Texas, filed on June 14, 2021. Boulder filed a lawsuit claiming breaches of contract against one of its franchisees, Mr. and Mrs. Sanford, and a third-party affiliated with the franchisee for disclosing its trade secrets and confidential information in violation of the agreements of the parties. On June 16, 2021, a temporary restraining order was issued against all defendants to protect Boulders trade secrets and confidential information. On December 20, 2021, Boulder reached a confidential settlement agreement with Mr. and Mr. Sanford to terminate their franchise agreement and cease use of the Boulder trademarks and trade secrets and Mr. and Mrs. Sanford paid a termination fee of $6,624.00. On March 23, 2022, Boulder reached a confidential settlement agreement with Red Art where Red Art agreed not to use or disclose confidential information or trade secrets in violation of any agreement between the pa
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Boulder Designs filed a lawsuit against Sanford and Red Art on June 14, 2021. The lawsuit, filed in the District Court of McLennan County, Texas, alleges breaches of contract due to the disclosure of trade secrets and confidential information. A temporary restraining order was issued on June 16, 2021, to protect Boulder Designs' trade secrets.
The dispute with Mr. and Mrs. Sanford was resolved on December 20, 2021, through a confidential settlement agreement. As part of the agreement, the Sanfords' franchise agreement was terminated, they ceased using Boulder Designs' trademarks and trade secrets, and they paid a termination fee of $6,624.00. A separate confidential settlement agreement was reached with Red Art on March 23, 2022, where Red Art agreed not to use or disclose confidential information or trade secrets.
This litigation history indicates the importance Boulder Designs places on protecting its trade secrets and confidential information. Prospective franchisees should understand the terms and conditions regarding confidentiality and trade secrets outlined in the franchise agreement to avoid potential legal issues. The fact that Boulder Designs pursued legal action and obtained restraining orders and settlements suggests they are proactive in defending their intellectual property.