Who owns the advertising materials that a Boulder Designs franchisee creates?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
All ideas, concepts, know-how, techniques, advertising or materials concerning the System or developed, in whole or in part, using Trade Secrets or other Confidential Information, whether or not protectable intellectual property and whether created by or for Franchisee or its owners or employees, or other Covered
Persons, shall be promptly disclosed to Franchisor and shall be deemed the sole and exclusive property of Franchisor and works made-for-hire for Franchisor, and no compensation shall be due to Franchisee or its owners or employees therefore. Further, any advertising materials Franchise submits to Franchisor for review will become Franchisor's property, and Franchisor may use or distribute these materials in any manner Franchisor deems appropriate, without compensation to Franchisee. Franchisor has the right to incorporate such items into the System and/or disclose them to other franchisees and other persons or entities. To the extent any item does not qualify as a "work made for hire" for Franchisor, Franchisee shall assign, and by this Agreement, does assign, ownership of that item, and all related rights to that item, to Franchisor and shall sign any assignment or other document as Franchisor requests to assist Franchisor in obtaining or preserving intellectual property rights in the item. Franchisor shall disclose to Franchisee concepts and developments of other franchisees that are made part of the System. As Franchisor may request, Franchisee shall take all actions to assist Franchisor's efforts to obtain or maintain intellectual property rights in any item or process related to the System, whether developed by Franchisee or not.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, any advertising materials or concepts related to the Boulder Designs system, even those created by a franchisee, are considered the sole property of Boulder Designs. This includes materials developed using trade secrets or confidential information.
This means that if a franchisee develops a successful advertising campaign or concept, Boulder Designs has the right to use it without compensating the franchisee. The FDD states that any advertising materials a franchisee submits for review become Boulder Designs' property, which they can then distribute or incorporate into the system as they see fit. Boulder Designs also has the right to share these materials with other franchisees.
This policy extends to all ideas, concepts, know-how, and techniques related to the Boulder Designs system. The franchisee is required to disclose any such developments to Boulder Designs, and these are automatically deemed the franchisor's property. The franchisee must also assist Boulder Designs in securing intellectual property rights for these items.
For a prospective franchisee, this means that while they may contribute to the marketing and advertising efforts of their local Boulder Designs business, they will not own the rights to any resulting materials or concepts. This is a fairly common practice in franchising, as it allows the franchisor to maintain brand consistency and leverage successful ideas across the entire franchise system. However, it's important for franchisees to understand that they will not receive any additional compensation or recognition for their creative contributions beyond the success it brings to their individual franchise.