What law governs disputes over the Marks for Boulder Designs franchises?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the | Summary | |
|---|---|---|---|
| Franchise Agreement | |||
| a. Length of the franchise | Section 4.1 | 10 years. | |
| term | |||
| b. Renewal or extension of | Section 4.2 | Additional 10-year term if certain conditions | |
| the term | are met. | ||
| Provision | Section in the Franchise Agreement | Summary or modify their business relationship with Us, our Affiliate(s) or any other franchisee. | |
| s. Modification of the | Sections 9.2 and | The Franchise Agreement can be modified | |
| agreement | 22.6 | only by written agreement between you and us. | |
| t. Integration/merger clause | Section 22.6 | Only the terms of the Franchise Agreement and all exhibits to the Franchise Agreement are binding (subject to state law). Any representations or promises made outside of the disclosure document and the Franchise Agreement may not be enforceable. | |
| u. Dispute resolution by arbitration or mediation | Section 23.7 | Except for actions or claims for injunctive relief or specific performance or relating to the Marks, Trade Secrets or Confidential Information, all disputes must be mediated in McLennan County, Texas. (Subject to state law) | |
| v. Choice of forum | Section 23.2 | Litigation must be initiated and maintained in the judicial district in which our principal place of business is located at the time the lawsuit was initiated, currently Waco, Texas. We have the right to seek injunctive relief from any court of competent jurisdiction. (Subject to state law) | |
| w. Choice of law | Section 23.1 | Texas law applies (subject to state law), except that disputes over the Marks will be governed by the United States Trademark Act of 1946. |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 44–50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, disputes regarding the Marks (trademarks) will be governed by the United States Trademark Act of 1946. This means that any legal disagreements specifically about Boulder Designs' trademarks will be subject to federal law, rather than state law.
This is a fairly standard practice in franchising, as trademark protection is often a critical element of a franchise system. The use of federal law provides a consistent and potentially more comprehensive legal framework for resolving these disputes. It also allows Boulder Designs to protect its brand identity across all of its franchise locations.
For a prospective Boulder Designs franchisee, this means that if a dispute arises concerning the use or infringement of Boulder Designs' trademarks, the case will be handled under federal law. Franchisees should familiarize themselves with the basics of trademark law and understand their rights and responsibilities regarding the use of Boulder Designs' Marks. It would be prudent to consult with an attorney specializing in franchise or trademark law to fully understand the implications.