What court jurisdiction do Buildingstars and the franchisee irrevocably submit to?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between BUILDINGSTARS and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in St. Louis, MO when
the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the application of Missouri law or to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims BUILDINGSTARS has relating to its trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by BUILDINGSTARS for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in St. Louis County, MO. Both parties agree to submit to the jurisdiction of the state and federal court in St. Louis County, MO.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees generally submit to the jurisdiction of the Federal District Court in St. Louis, MO, provided the conditions of 28 U.S.C. § 1332 are met. Both parties and any guarantors irrevocably submit to this court's jurisdiction and waive objections to Missouri law or venue.
However, the FDD specifies exceptions to this general rule. Buildingstars may bring claims relating to its trademarks, service marks, patents, or copyrights, claims related to leases or subleases, or requests for injunctive relief in either federal or state courts in St. Louis County, MO. Both parties agree to submit to the jurisdiction of these courts as well.
In cases where the Federal District Court in St. Louis lacks jurisdiction, disputes will be resolved through binding arbitration. This multi-tiered approach ensures Buildingstars has options for legal recourse while also including alternative dispute resolution methods.