What actions must a Buildingstars franchisee take immediately upon termination or expiration of the franchise agreement regarding the use of Buildingstars' intellectual property?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE'S rights hereunder shall terminate.
FRANCHISEE shall immediately thereafter discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of BUILDINGSTARS' business and return any copyrighted materials which have been provided to FRANCHISEE by BUILDINGSTARS, and if BUILDINGSTARS requests, shall assign its telephone numbers to BUILDINGSTARS and execute any and all documents necessary to do so.
Further, FRANCHISEE shall pay all amounts due to BUILDINGSTARS, BUILDINGSTARS' Affiliates, and suppliers.
Further, FRANCHISEE agrees to return any and all materials which contain Confidential Information in whatever form, including but not limited to the Confidential Operation Manual, to BUILDINGSTARS immediately.
FRANCHISEE'S obligations regarding Trade Secrets and Confidential Information and Non-Solicitation and Non-Competition shall remain in full force and effect in accordance with their terms, notwithstanding such termination.
FRANCHISEE will immediately cease providing services to all Customers and forfeit all rights it has to the customer accounts. Upon request of BUILDINGSTARS, FRANCHISEE will assign to BUILDINGSTARS any or all of FRANCHISEE'S customer contracts and BUILDINGSTARS will have the right to either service the accounts or assign the servicing of the accounts to others. At no such time
will FRANCHISEE terminate a written contract until proper notice has been given to BUILDINGSTARS prior to termination.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee faces several immediate obligations related to Buildingstars' intellectual property. All rights granted to the franchisee under the agreement terminate immediately.
The franchisee must immediately stop using all Buildingstars' marks, signs, colors, structures, printed materials, and advertising that are indicative of the Buildingstars business. The franchisee must also return any copyrighted materials provided by Buildingstars. Additionally, if Buildingstars requests, the franchisee must assign its telephone numbers to Buildingstars and execute any necessary documents to complete the assignment.
Furthermore, the franchisee is obligated to return all materials containing confidential information, including the Confidential Operation Manual, to Buildingstars immediately. Even after termination, the franchisee's obligations regarding trade secrets, confidential information, non-solicitation, and non-competition remain in full effect according to their original terms. The franchisee must also cease providing services to all customers and forfeits all rights to those customer accounts. Buildingstars has the right to either service these accounts or assign them to others. The franchisee cannot terminate any written customer contracts without providing Buildingstars with prior notice.