What happens if a Boulder Designs franchisee uses the trademarks in an unauthorized manner?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
All usage of the Marks by you and any goodwill established through your use will exclusively benefit us. You will not receive any rights to the Marks other than the nonexclusive right to use them in the operation of your Franchised Business. You may only use the Marks in accordance with our standards, operating procedures and specifications. Any unauthorized use of the Marks by you is a breach of the Franchise Agreement and an infringement of Our rights in the Marks. You may not contest the validity or ownership of the Marks, including any Marks that we license to you after you sign the Franchise Agreement. You may not assist any other person in contesting the validity or ownership of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, any unauthorized use of the trademarks by a franchisee constitutes a breach of the Franchise Agreement and an infringement of Boulder Designs' rights in the trademarks. This means that franchisees must adhere strictly to the standards, operating procedures, and specifications provided by Boulder Designs when using the trademarks.
The FDD specifies several ways a franchisee could potentially misuse the trademarks. For example, a franchisee cannot use the trademarks as part of their business entity name in any modified form, nor can they use the trademarks in connection with the sale of any unauthorized products or services without written authorization from Boulder Designs. Similarly, franchisees must obtain written consent from Boulder Designs before creating or operating any internet site or website using domain names containing "Boulder Designs" or any variation thereof.
Furthermore, Boulder Designs retains control over social media usage of its trademarks. While franchisees can create social media accounts using the trademarks, all materials and campaigns must be pre-approved by Boulder Designs. Any unauthorized representations regarding profits or earnings on social media, even from personal accounts, are considered a breach of confidential information under the Franchise Agreement. Upon termination or non-renewal of the franchise agreement, the franchisee must relinquish all rights to any such social media accounts.