Where must litigation be initiated and maintained for disputes related to a Boulder Designs franchise?
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) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, litigation must be initiated and maintained in the judicial district where Boulder Designs's principal place of business is located. Currently, this is Waco, Texas. This clause is subject to state law, meaning that certain state laws may override this provision.
This means that if a Boulder Designs franchisee has a legal dispute with the franchisor that cannot be resolved through mediation or other means, the franchisee may be required to file a lawsuit in Waco, Texas, regardless of where the franchisee's business is located. This could create additional expenses for the franchisee, such as travel costs and attorney fees, as they would need to hire legal representation familiar with the Texas court system.
It is important to note that Boulder Designs retains the right to seek injunctive relief from any court of competent jurisdiction. Injunctive relief typically involves seeking a court order to stop someone from doing something, such as violating a non-compete agreement or misusing trademarks. This means that Boulder Designs is not restricted to filing for injunctive relief in Waco, Texas, and can pursue such actions in any court that has the authority to grant the requested relief.