What expenses are specifically excluded from the indemnification provided by Boulder Designs regarding the use of its marks?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee recognizes that from time to time, Franchisor may introduce, as part of the System, other methods or technology which require certain System modifications including, without limitation, the adoption and use of modified or substitute Marks, new computer hardware and software, equipment, signs or fixtures. Franchisee agrees to make all required upgrades and modifications at its expense as may be required by Franchisor. Franchisee agrees to comply with Franchisor's directions within a reasonable time after receiving notice of such changes. Franchisor is not required to reimburse Franchisee for any costs or expenses associated with making such trade or service mark changes, for any loss of revenue due to any modified or discontinued Mark, or for your expenses in promoting a modified or substitute trademark or service mark. Any other additional investment other than modification or substitution of Marks is required to be made in the last year of the initial term, Franchisee may avoid making the investment by providing notice of intent not to renew the Franchise Agreement unless the investment is in connection with a modification to the System required by law or court order. Franchisee acknowledges any required expenditures for changes or upgrades to the System shall be in addition to expenditures for refurbishment, remodeling, repairs and maintenance as required in Article 5 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, franchisees are responsible for expenses related to system modifications, including changes to trademarks. Specifically, Boulder Designs will not reimburse franchisees for costs associated with trade or service mark changes, loss of revenue due to modified or discontinued marks, or expenses incurred in promoting modified or substitute trademarks.
This means that if Boulder Designs decides to update or change its branding, franchisees will bear the financial burden of implementing these changes. This includes the cost of new signage, marketing materials, and any other items that display the updated trademarks. Additionally, franchisees will not be compensated for any potential loss of income resulting from the transition to the new branding.
This policy places a financial risk on the franchisee, as they must be prepared to invest in rebranding efforts at their own expense. It is important for prospective franchisees to consider these potential costs when evaluating the overall investment required to operate a Boulder Designs franchise. Franchisees should inquire about the frequency and potential costs associated with system-wide modifications and trademark changes to better understand the financial implications.