What actions must a Buildingstars franchisee take immediately upon termination or expiration of the franchise agreement regarding Buildingstars' intellectual property?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
g of any failure of BUILDINGSTARS to perform any of BUILDINGSTARS' obligations pursuant to this Agreement. FRANCHISEE may terminate this Agreement if BUILDINGSTARS shall materially default in performance of any terms and conditions in this Agreement, after giving BUILDINGSTARS written notice within thirty (30) days thereof, and if the default has not been corrected within sixty (60) days thereafter.
- C. Consequences of Termination. 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee faces several immediate obligations regarding Buildingstars' intellectual property. The franchisee must immediately stop using all Marks, signs, colors, structures, printed goods, and forms of advertising that are indicative of Buildingstars' business. This means a complete cessation of using Buildingstars' branding and visual identity in any business operations or promotional materials.
Additionally, the franchisee is required to return any copyrighted materials that Buildingstars provided during the franchise term. This includes, but is not limited to, the Confidential Operations Manual, which contains trade secrets and operational guidelines. The franchisee must ensure that the manual is kept current and up-to-date during the franchise term, and return it upon termination or expiration. The franchisee cannot photocopy, reproduce, or disseminate the manual without Buildingstars' written consent.
Furthermore, if Buildingstars requests, the franchisee must assign its telephone numbers to Buildingstars and execute any necessary documents to facilitate this transfer. This ensures that customers can still reach Buildingstars through familiar channels. The franchisee must also return any and all materials containing Confidential Information immediately to Buildingstars. These obligations regarding Trade Secrets and Confidential Information, as well as Non-Solicitation and Non-Competition, remain in effect even after termination, according to their original terms.