Who has the discretion to determine whether to defend the use of the Buildingstars marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE agrees to promptly notify BUILDINGSTARS of any claim, demand, or suit based upon or arising from any attempt by anyone else to use the Marks, or any colorable variation thereof.
BUILDINGSTARS or BUILDINGSTARS' Affiliates shall have the sole discretion to determine if they will defend the use of the Marks, and they are not obligated to defend the Marks.
BUILDINGSTARS or BUILDINGSTARS' Affiliates have the right to control any administrative proceeding or litigation involving the Marks.
FRANCHISEE shall execute any and all instruments and documents, render assistance, and do such acts as may, in the opinion of BUILDINGSTARS' counsel, be necessary or advisable to protect the interests of BUILDINGSTARS or its Affiliates in any such litigation, or proceedings, or to otherwise protect and maintain the interest of BUILDINGSTARS or its Affiliates in the Marks.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars or its affiliates have the sole discretion to determine whether to defend the use of the Buildingstars marks. This means that if a third party attempts to use the Buildingstars marks, or a variation of them, Buildingstars is not obligated to take legal action to defend its trademarks. The franchisee is responsible for promptly notifying Buildingstars of any potential infringement.
This discretion benefits Buildingstars, allowing them to strategically decide when and how to protect their brand. Defending trademarks can be costly and time-consuming, so Buildingstars can choose to pursue legal action only in cases where they believe it is most beneficial to their overall business interests.
For a prospective Buildingstars franchisee, this means they cannot rely on Buildingstars to automatically defend the marks against infringement. While franchisees are required to notify Buildingstars of any potential misuse, the ultimate decision to defend the marks rests solely with Buildingstars. The franchisee should be aware that they are prohibited from contesting the validity or ownership of the marks themselves.