Is a Buildingstars franchisee required to execute documents to protect Buildingstars' interests in litigation involving the Marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee is required to execute documents to protect Buildingstars' interests in litigation involving the Marks. The franchisee must provide assistance and perform necessary actions as deemed advisable by Buildingstars' counsel. These actions are intended to protect Buildingstars' interests or those of its affiliates in any litigation or proceedings, and to maintain Buildingstars' interest in its Marks.
This requirement means that a Buildingstars franchisee could be compelled to sign legal documents, provide information, and otherwise assist Buildingstars in legal matters related to the brand's trademarks. This obligation extends to any administrative proceeding or litigation involving the Marks, giving Buildingstars the right to control such proceedings.
For a prospective franchisee, this clause highlights the importance of understanding the potential legal obligations that come with owning a Buildingstars franchise. While Buildingstars retains the discretion to defend its Marks, the franchisee is obligated to actively support these efforts, potentially incurring time and expense in doing so. Franchisees should seek clarification from Buildingstars regarding the scope of these obligations and potential costs involved.