Under what conditions can the license to use the Boulder Designs trademarks be terminated?
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 its trademarks, which Boulder Designs then sublicenses to its franchisees. This license, effective from December 1, 2017, extends for a term of 99 years. However, the agreement can be terminated under specific circumstances related to Boulder Designs's financial stability and operational conduct.
The license agreement between Mogavero Investments and Boulder Designs can be terminated if Boulder Designs takes any affirmative act of insolvency, or if a receiver or trustee is appointed to take possession of Boulder Designs's properties and is not discharged within 90 days. Additionally, termination can occur if Boulder Designs winds up, sells, consolidates, or merges its business.
Furthermore, Mogavero Investments can terminate the license agreement if Boulder Designs breaches any of its duties and obligations under the license and fails to cure the breach within 60 days following written notice of the breach. However, even if Mogavero Investments terminates the license agreement with Boulder Designs, it is obligated to honor all existing franchise agreements, including the franchisees' rights to renew their agreements. This provision offers some protection to franchisees, ensuring their operational rights are maintained even if the overarching licensing agreement faces termination.