Does Boulder Designs have exclusive control over any proceeding concerning any Mark?
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 maintains exclusive control over any settlement or proceeding concerning any Mark. However, this is contingent upon the franchisee fulfilling certain obligations. Specifically, the franchisee must immediately notify Boulder Designs of any apparent infringement or challenge to the use of any Marks, remain in complete compliance with the Franchise Agreement, and allow Boulder Designs to take whatever action it deems appropriate. Additionally, the franchisee must agree to be a witness in any legal, mediation, or arbitration proceeding on Boulder Designs's behalf and take any actions deemed advisable by Boulder Designs's counsel to protect and maintain their interests in any proceeding or to otherwise protect and maintain their interests in the Marks.
This means that while franchisees are authorized to use Boulder Designs's trademarks in their business operations, Boulder Designs retains ultimate authority over how those trademarks are defended and managed in legal contexts. Franchisees are obligated to cooperate fully with Boulder Designs in any legal matters pertaining to the trademarks and cannot act independently in such matters.
This arrangement is typical in franchising, as it ensures brand consistency and protects the overall value of the trademark for the benefit of all franchisees. However, it also means that franchisees must rely on Boulder Designs to vigorously defend the trademarks and to make strategic decisions about legal proceedings. Franchisees also bear the risk of needing to act as a witness in legal proceedings.
A prospective Boulder Designs franchisee should carefully consider these obligations and ensure they are comfortable with relinquishing control over legal matters pertaining to the trademarks to Boulder Designs. It would be prudent to discuss with existing franchisees their experiences with trademark-related legal issues and how Boulder Designs has handled such matters.