Does the Buildingstars franchise agreement grant franchisees an exclusive right to use the Buildingstars marks?

According to Buildingstars' 2025 Franchise Disclosure Document, the franchise agreement does not grant franchisees an exclusive right to use the Buildingstars marks. The agreement specifies that the right to use the marks is nonexclusive. This means that Buildingstars and its affiliates retain the right to operate businesses under the Buildingstars marks themselves, or to franchise or license others to do so, without restriction.

This non-exclusive grant has significant implications for a Buildingstars franchisee. Buildingstars and its affiliates can operate or franchise similar businesses under the same marks anywhere, including within the franchisee's designated area. They can also operate similar businesses under different marks or systems, and sell authorized products/services through any distribution channel. This could create direct competition for the franchisee, potentially impacting their customer base and revenue.

Furthermore, Buildingstars retains the right to change the marks used by the franchisee at any time, for any reason, and the franchisee is responsible for the costs associated with such changes. This could involve expenses for new signage, marketing materials, and other items bearing the updated marks. While the franchisee is protected from others contesting the validity or ownership of the marks, they do not have exclusive control over their use within their territory or market.

In summary, while franchisees are granted the right to use Buildingstars' marks, this right is explicitly non-exclusive, allowing Buildingstars considerable freedom to operate and expand using the same or different marks, potentially in competition with its own franchisees. Prospective franchisees should carefully consider the implications of this non-exclusive grant and its potential impact on their business.