If Boulder Designs chooses to have a franchisee assign a fictitious name registration to them after termination, is the franchisee obligated to do so?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17.1 Actions to be Taken
Except as otherwise provided herein, upon termination and non-renewal or expiration, this Agreement and all rights granted herein to Franchisee shall terminate and Franchisee shall:
- v. immediately take such action as may be necessary to cancel or assign to Franchisor, at Franchisor's option, any fictitious or assumed name or equivalent registration filed with state, city or county authorities which contains the name "Boulder Designs" or any other Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five days after termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee is obligated to take certain actions. Specifically, the franchisee must take action to assign any fictitious or assumed name registration to Boulder Designs, if Boulder Designs chooses that option. This registration would be one filed with state, city, or county authorities that contains the name "Boulder Designs" or any other mark associated with the franchise.
Furthermore, the franchisee must provide Boulder Designs with evidence of compliance with this obligation within five days after the termination or expiration of the agreement. This means the franchisee needs to act quickly to ensure the transfer or cancellation is completed and documented within that short timeframe.
This requirement is fairly standard in franchising, as it protects the brand's identity and prevents former franchisees from operating under a similar name that could confuse customers. By assigning the fictitious name registration to Boulder Designs, the franchisor maintains control over its brand and ensures consistent representation in the market.