When did Boulder Designs reach a settlement agreement with Mr. and Mrs. Sanford?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
rets.
Boulder v Sanford and Red Art (Case No. No. 21-0846-C26), in the District Court of McLennan County, Texas, filed on June 14, 2021. Boulder filed a lawsuit claiming breaches of contract against one of its franchisees, Mr. and Mrs. Sanford, and a third-party affiliated with the franchisee for disclosing its trade secrets and confidential information in violation of the agreements of the parties. On June 16, 2021, a temporary restraining order was issued against all defendants to protect Boulders trade secrets and confidential information. On December 20, 2021, Boulder reached a confidential settlement agreement with Mr. and Mr. Sanford to terminate their franchise agreement and cease use of the Boulder trademarks and trade secrets and Mr. and Mrs. Sanford paid a termination fee of $6,624.00. On March 23, 2022, Boulder reached a confidential settlement agreement with Red Art where Red Art agreed not to use or disclose confidential information or trade secrets in violation of any agreement between the pa
Source: Item 3 — LITIGATION (FDD pages 9–10)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a settlement agreement was reached with Mr. and Mrs. Sanford on December 20, 2021. The lawsuit, filed on June 14, 2021, in the District Court of McLennan County, Texas, alleged breaches of contract due to the disclosure of trade secrets and confidential information.
The settlement resulted in the termination of Mr. and Mrs. Sanford's franchise agreement. As part of the agreement, they were required to cease using Boulder Designs' trademarks and trade secrets. Additionally, Mr. and Mrs. Sanford paid a termination fee of $6,624.00 to Boulder Designs.
This litigation and its resolution highlight the importance of franchisees adhering to the terms of their franchise agreement, particularly regarding the protection of confidential information and trade secrets. It also demonstrates Boulder Designs' willingness to pursue legal action to protect its interests and enforce its agreements. For prospective franchisees, this underscores the need to fully understand and comply with all contractual obligations to avoid potential legal disputes and financial penalties.