What assistance must a Buildingstars franchisee provide to protect Buildingstars' interest in the marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or any claim by any person of any rights in any Mark. We and our Affiliates will have the sole discretion to take such action as we deem appropriate and the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge or claim. You must execute any and all instruments and documents, provide such assistance, and take any action that may be necessary or advisable to protect and maintain our interests in any litigation or other proceeding or otherwise to protect and maintain our interest in the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a Mark or if the proceeding is resolved unfavorably to you.
If we decide to modify or discontinue the use of the Marks and/or to use one or more additional or substitute names or marks, you will be obligated to do so at your own expense and without claim against us, within a reasonable time of our request.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees have specific obligations to protect Buildingstars' trademarks. If a franchisee becomes aware of any potential infringement or challenges to the use of the Buildingstars marks, or any claims by others regarding rights to the marks, they must immediately notify Buildingstars. This is a standard requirement in franchising, as franchisors must actively protect their trademarks to maintain their validity.
Buildingstars retains the sole discretion to decide on the appropriate course of action regarding any infringement, challenge, or claim. Buildingstars also has the exclusive right to control any litigation or administrative proceedings that arise from such situations. Franchisees are obligated to cooperate fully with Buildingstars in these matters.
Specifically, franchisees must execute any documents, provide assistance, and take any actions deemed necessary or advisable by Buildingstars to protect and maintain their interests in any litigation, proceeding, or the marks themselves. However, the Franchise Agreement stipulates that Buildingstars is not required to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is involved in an administrative or judicial proceeding related to a mark, especially if the outcome is unfavorable to the franchisee. This means that while franchisees must assist Buildingstars, they may bear the costs of their own defense in certain trademark-related legal matters.
Finally, Buildingstars has the right to modify or discontinue the use of its marks, or to introduce new or substitute marks. If this occurs, franchisees are obligated to adopt the changes at their own expense and without any claim against Buildingstars, within a reasonable timeframe after Buildingstars' request. This highlights the importance of franchisees understanding that the branding they initially invest in may evolve over time, and they must be prepared to adapt accordingly at their own cost.