What court has jurisdiction over litigation involving Buildingstars and its franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, disputes between Buildingstars and its franchisees will generally be filed in the Federal District Court in St. Louis, MO, provided the grounds set forth in 28 U.S.C. § 1332 are met. Both parties must 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. If the federal court lacks jurisdiction, the parties must submit to binding arbitration.
However, Buildingstars has the option to bring certain claims, specifically those relating to its trademarks, service marks, patents, or copyrights, claims relating to any lease or sublease of any real property between the parties, 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.
This means that a franchisee could potentially face litigation in either the Federal District Court in St. Louis or the state or federal courts in St. Louis County, MO, depending on the nature of the claim. It is important for prospective franchisees to understand these jurisdictional provisions, as they dictate where legal disputes will be resolved and can impact the cost and convenience of litigation. Franchisees should consult with an attorney to fully understand the implications of these clauses.