Is a Buildingstars franchisee required to notify Buildingstars of any potential trademark infringement 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' 2025 Franchise Disclosure Document, a franchisee is required to promptly notify Buildingstars of any potential trademark infringement. Specifically, the franchisee must inform Buildingstars of any claim, demand, or suit arising from someone else's attempt to use the Buildingstars marks or any similar variation.
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 related to the marks.
The franchisee is further obligated to execute any documents, provide assistance, and perform any actions deemed necessary by Buildingstars' counsel to protect Buildingstars' interests in any litigation or proceedings, or to otherwise safeguard Buildingstars' interest in its marks. This clause ensures that Buildingstars maintains control over its brand and can take appropriate action against any unauthorized use of its trademarks.