Does the license agreement for Boulder Designs trademarks include future trademarks acquired by Mogavero Investments?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Mogavero Investments has granted us a license to use and sublicense to use the above-mentioned Marks, dated December 1, 2017. The term of the license is for 99 years. The license agreement may be terminated if we take any affirmative act of insolvency, if a receiver or trustee is appointed to take possession of our properties and is not discharged within 90 days, if we wind up, sell, consolidate or merge our business, or if we breach any of our duties and obligations under the license and do not cure the breach within 60 days following written notice of the breach. Within the license agreement, the term "Marks" includes any other trade names, service marks, trademarks, designs, logos, slogans and commercial symbols now in existence or later adopted by Mogavero Investments that are used in connection with the System. This license agreement licensed to us any future trademarks acquired by Mogavero Investments as well. If Mogavero Investments terminates the license agreement, they must honor all franchise agreements, including the right to renew.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, the license agreement between Mogavero Investments and the franchisor includes future trademarks acquired by Mogavero Investments. Mogavero Investments has granted the franchisor a license to use the trademarks, with the license agreement dated December 1, 2017, and lasting for 99 years. This agreement allows the franchisor to sublicense the trademarks to Boulder Designs franchisees.
The license agreement specifies that the term "Marks" includes any trade names, service marks, trademarks, designs, logos, slogans, and commercial symbols that are currently in existence or adopted later by Mogavero Investments, provided they are used in connection with the Boulder Designs system. This means that any new trademarks Mogavero Investments acquires that are relevant to the Boulder Designs franchise will automatically be included in the license granted to the franchisor, and by extension, to the franchisees.
However, the license agreement can be terminated under certain conditions, such as the franchisor taking any affirmative act of insolvency, the appointment of a receiver or trustee for their properties that is not discharged within 90 days, the winding up, sale, consolidation, or merger of their business, or a failure to cure a breach of their duties and obligations within 60 days following written notice. Despite these termination conditions, Mogavero Investments must honor all existing franchise agreements, including renewal rights, even if the license agreement is terminated.