What was the monetary compensation that T&C agreed to pay Boulder Designs in the settlement agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ebts.
Boulder Designs Franchising, LLC v. Town & Country Lawn Care and Landscape, Inc., et al (Case No. 3:20-CV-00992), in the US District Court for the Southern District of Illinois, filed on September 20, 2020. The parties are Plaintiff, Boulder Design Franchising, LLC and Defendants, Town & Country Lawn Care and Landscape, Inc., d/b/a T AND C Custom Boulders, Steve Palazzolo, individually, and Renee Palazolo, individually. Franchisor brought a suit for breach of contract for improperly retaining and disclosing Franchisor's confidential, proprietary, and trade secret information, and soliciting Franchisor's customers; violations of the Illinois Trade Secrets Act by using and disclosing Franchisor's confidential information without the express or implied consent of Franchisor to directly compete with Franchisor; unfair competition resulting from advertising using pictures of Franchisor's products and passing them as their own and disparaging Franchisor to potential customers and franchisees; and an injunction enjoining Defendants from using, accessing, or possessing proprietary and confidential information and returning such information, and soliciting Franchisor's customers during the term of Defendant's restrictive covenants. On September 30, 2021 the parties entered into a confidential settlement agreement wherein T&C agreed to compensate Boulder $20,000.00 and refrain from using or disclosing Boulder's confidential information and trade se
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, in a settlement agreement reached on September 30, 2021, Town & Country Lawn Care and Landscape, Inc. (T&C) agreed to pay Boulder Designs $20,000.00. In addition to the monetary compensation, T&C also agreed to refrain from using or disclosing Boulder Designs' confidential information and trade secrets. This settlement resolved a lawsuit filed by Boulder Designs on September 20, 2020, alleging breach of contract, violations of the Illinois Trade Secrets Act, and unfair competition. The initial lawsuit claimed that T&C improperly retained and disclosed Boulder Designs' confidential information, solicited Boulder Designs' customers, and disparaged Boulder Designs to potential customers and franchisees.
For a prospective Boulder Designs franchisee, this litigation history demonstrates the franchisor's willingness to protect its brand, trade secrets, and customer relationships through legal action. The fact that Boulder Designs secured a $20,000 settlement and an agreement from T&C to protect confidential information suggests that the franchisor is proactive in enforcing its rights and safeguarding its proprietary information. This could be viewed as a positive sign, indicating that Boulder Designs is committed to maintaining the integrity of its franchise system and protecting its franchisees from unfair competition.
However, it's important to note that litigation can be costly and time-consuming, even when successful. While Boulder Designs prevailed in this particular case, prospective franchisees should consider the potential for future disputes and the resources that may be required to resolve them. Reviewing the full litigation history in Item 3 of the FDD, including the outcomes of other cases, can provide a more comprehensive understanding of the franchisor's approach to conflict resolution and the potential risks involved in operating a Boulder Designs franchise.