Is a Buildingstars franchisee required to notify Buildingstars of any claims related to the use of Buildingstars' Marks by others?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, Buildingstars franchisees are required to promptly notify Buildingstars of any claims, demands, or suits arising from someone else's attempt to use Buildingstars' Marks or any similar variation. This obligation is in place to protect Buildingstars' brand and intellectual property.
Buildingstars retains the sole discretion to decide whether to defend the use of its Marks and is not obligated to do so. Buildingstars also has the right to control any administrative or legal proceedings involving the Marks. The franchisee is required to assist Buildingstars in these matters by executing necessary documents and providing assistance as deemed necessary by Buildingstars' counsel to protect Buildingstars' interests in any litigation or proceedings.
This requirement ensures that Buildingstars is aware of any potential infringement on its trademarks and can take appropriate action to protect its brand. For a prospective franchisee, this means being vigilant about potential misuse of the Buildingstars Marks by others and promptly reporting any such instances to Buildingstars. Failure to do so could potentially lead to a breach of the franchise agreement.