What is the term length of the license granted to use the Boulder Designs trademarks?
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, Mogavero Investments has granted Boulder Designs a license to use and sublicense its trademarks. This license is dated December 1, 2017, and has a term of 99 years. This means that Boulder Designs has the right to use and allow its franchisees to use these trademarks for a substantial period.
The license agreement can be terminated under specific conditions. These include Boulder Designs taking any affirmative act of insolvency, the appointment of a receiver or trustee to take possession of their properties that is not discharged within 90 days, winding up, selling, consolidating, or merging their business, or breaching any duties and obligations under the license without curing the breach within 60 days following written notice. These termination clauses protect Mogavero Investments and ensure Boulder Designs adheres to certain operational and financial standards.
For a prospective Boulder Designs franchisee, this long-term license provides assurance that the brand and its associated trademarks will be available for use throughout the duration of their franchise agreement. Additionally, the clause stating that Mogavero Investments must honor all franchise agreements, including the right to renew, if the license agreement is terminated, offers further security to franchisees. This ensures that franchisees' rights are protected even if the licensing agreement between Boulder Designs and Mogavero Investments faces unforeseen issues.