Does Boulder Designs have exclusive control over any settlement 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, certain conditions must be met by the franchisee. The franchisee must immediately notify Boulder Designs of any apparent infringement, challenge, or claim regarding the use of any Marks. The franchisee must also be in complete compliance with their Franchise Agreement and allow Boulder Designs to take whatever action it deems appropriate in these situations. 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 that Boulder Designs's counsel deems advisable to protect and maintain their interests in the Marks.
This means that as a Boulder Designs franchisee, you are obligated to inform the franchisor of any potential trademark issues and follow their instructions in handling such matters. You are not allowed to communicate with anyone other than Boulder Designs and their counsel regarding infringements, challenges, or claims, although you may consult with your own counsel at your own expense. This provision ensures that Boulder Designs can protect its trademarks consistently across all franchise locations.
The FDD also states that Boulder Designs will protect franchisees against claims of infringement or unfair competition arising from the use of any Marks. However, Boulder Designs will not reimburse franchisees for expenses and legal fees for separate, independent legal counsel or for any expenses in removing signage or discontinuing the use of any Mark. Boulder Designs also retains the right to require franchisees to modify or discontinue the use of any Mark and/or to use other trademarks or service marks. While franchisees may be required to add or replace supplies, signs, and fixtures to conform to current standards, they will not be required to spend more than their initial investment during the initial term of the Franchise Agreement.