What is a Boulder Designs franchisee required to do if there is an apparent infringement of the trademarks?
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, if a franchisee becomes aware of a potential infringement on the Boulder Designs trademarks, they must take specific actions. First, the franchisee must immediately notify Boulder Designs of the apparent infringement, challenge, or claim related to the use of any Marks. The franchisee must also be in complete compliance with their Franchise Agreement.
Boulder Designs requires that the franchisee allow them to take any action they deem appropriate in response to the infringement. This gives Boulder Designs exclusive control over any settlement or legal proceedings concerning their trademarks. Additionally, the franchisee must agree to be a witness in any legal, mediation, or arbitration proceeding on Boulder Designs's behalf.
The franchisee is obligated to take any actions that Boulder Designs's counsel deems advisable to protect and maintain Boulder Designs's interests in any proceeding or to otherwise protect and maintain their interests in the Marks. The franchisee is restricted from communicating with anyone other than Boulder Designs and their counsel regarding any infringements, challenges, or claims, although they are permitted to communicate with their own counsel at their own expense. These measures ensure that Boulder Designs maintains control over its trademarks and can act swiftly to address any potential infringements, while also requiring the franchisee's cooperation in protecting those trademarks.