Are there any agreements that significantly limit the rights to use or license 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.
Except as stated above, there are no agreements currently in effect that significantly limit our rights to use or to license the use of the Marks in any manner material to the franchise.
We know of no currently effective material determinations of the USPTO, trademark trial and appeal board, the trademark administrator of this state or any court; pending infringement, opposition or cancellation; or pending material litigation involving the Marks.
We know of no infringing or prior superior uses that could materially affect the use of the Marks in this State or any other state in which the Franchised Business is to be located.
Source: Item 13 — TRADEMARKS (FDD pages 34–36)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, there is a license agreement with Mogavero Investments, dated December 1, 2017, granting Boulder Designs the right to use and sublicense its trademarks for a term of 99 years. This agreement covers existing and future trademarks related to the Boulder Designs system acquired by Mogavero Investments. The license can be terminated if Boulder Designs becomes insolvent, has a receiver appointed that isn't discharged within 90 days, winds up or sells the business, or breaches the agreement and fails to cure it within 60 days of written notice. However, even if Mogavero Investments terminates the license agreement, they must still honor all existing franchise agreements, including renewal rights.
Beyond the Mogavero Investments license, the FDD states that there are no other agreements that significantly limit Boulder Designs's rights to use or license its trademarks in a way that would be material to the franchise. Boulder Designs also states that it is unaware of any material determinations by the USPTO or any court, or any pending litigation, that could affect the trademarks. They also state they are unaware of any infringing or prior superior uses that could materially affect the use of the Marks.
This indicates that Boulder Designs believes it has secured the necessary rights to use and sublicense its trademarks for the foreseeable future, with the primary agreement being the license from Mogavero Investments. Prospective franchisees should be aware of the conditions under which the Mogavero Investments license could be terminated, although the FDD states that existing franchise agreements would still be honored. This provides some assurance that a franchisee's right to use the trademarks would continue even if the license between Boulder Designs and Mogavero Investments were to end.