What must a Buildingstars franchisee do if they notice an infringement of the marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or any claim by any person of any rights in any Mark. We and our Affiliates will have the sole discretion to take such action as we deem appropriate and the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge or claim. You must execute any and all instruments and documents, provide such assistance, and take any action that may be necessary or advisable to protect and maintain our interests in any litigation or other proceeding or otherwise to protect and maintain our interest in the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a Mark or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must immediately notify Buildingstars of any apparent infringement or challenge to their use of any mark, or any claim by any person of any rights in any mark. Buildingstars and its affiliates have the sole discretion to take action they deem appropriate and have the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge, or claim.
Furthermore, the franchisee must execute any and all instruments and documents, provide assistance, and take any action that may be necessary or advisable to protect and maintain Buildingstars's interests in any litigation or other proceeding or otherwise to protect and maintain their interest in the marks. However, the Franchise Agreement does not require Buildingstars to participate in the franchisee's defense or indemnify them for expenses or damages if they are a party to an administrative or judicial proceeding involving a mark or if the proceeding is resolved unfavorably to the franchisee.
This means that while franchisees are obligated to report any potential trademark infringements and assist Buildingstars in protecting its marks, they should not expect Buildingstars to cover their legal expenses or provide a defense if they become involved in legal proceedings related to the marks. This is a fairly standard arrangement in franchising, as franchisors typically retain control over trademark enforcement but may not necessarily cover individual franchisee legal costs.