Is a Buildingstars franchisee allowed to indirectly contest the validity of Buildingstars' trademarks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- B. Contest of Marks. FRANCHISEE will not directly or indirectly contest or aid in contesting the validity or ownership of the Marks, trade secrets, methods, procedures and advertising techniques which are part of the System, or contest BUILDINGSTARS' and BUILDINGSTARS' Affiliates' right to register, use or license others to use such names and Marks, trade secrets, methods, procedures and techniques. FRANCHISEE will not at any time (whether during the term of this Agreement or after expiration or termination thereof) directly or indirectly commit an act of infringement. 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are prohibited from directly or indirectly contesting the validity or ownership of Buildingstars' trademarks. The franchisee also cannot assist others in contesting the trademarks. This restriction extends to Buildingstars' trade secrets, methods, procedures, and advertising techniques that are part of the Buildingstars system.
This means a franchisee cannot challenge Buildingstars' right to register, use, or license others to use its trademarks, trade secrets, methods, procedures, and techniques. Furthermore, franchisees are prohibited from infringing on Buildingstars' trademarks at any time, even after the franchise agreement expires or is terminated.
The franchisee is obligated to promptly inform Buildingstars of any claims or suits arising from attempts by others to use the trademarks or similar variations. Buildingstars has the sole discretion to decide whether to defend the use of its trademarks and is not obligated to do so. Buildingstars also retains the right to control any administrative or legal proceedings involving the trademarks. The franchisee must assist Buildingstars by executing documents and providing necessary support to protect Buildingstars' interests in any litigation or proceedings related to the trademarks.