What is a Buildingstars franchisee required to do to show Buildingstars' ownership of intellectual property?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Innovations. All ideas, concepts, techniques or materials concerning the Business, whether or not protectable intellectual property and whether created by FRANCHISEE or its owners or employees, must be promptly disclosed to BUILDINGSTARS and will be deemed to be BUILDNGSTARS' sole and exclusive property, part of the System, and works made-for-hire for BUILDINGSTARS. To the extent any item does not qualify as a "work made-for-hire" for BUILDINGSTARS, FRANCHISEE must assign ownership of that item and all related rights to that item, to BUILDINGSTARS and must take whatever action (including signing assignments or other documents) BUILDINGSTARS requests to show BUILDINGSTARS' ownership or help BUILDINGSTARS obtain intellectual property rights in the item. However, if this provision is found to be invalid or unenforceable, FRANCHISEE grants to BUILDINGSTARS a worldwide, perpetual, non-exclusive and fully paid license to use and sublicense the use of the ideas, concepts, techniques or materials.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 28)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, Buildingstars requires franchisees to disclose promptly any ideas, concepts, techniques, or materials related to the business, regardless of whether they are protectable intellectual property. These innovations, whether created by the franchisee, their owners, or employees, are deemed Buildingstars' exclusive property and considered "works made-for-hire." This means Buildingstars owns the rights to these creations from the outset.
If any item does not legally qualify as a "work made-for-hire," the franchisee must assign ownership and all related rights to Buildingstars. To formalize this transfer, the franchisee must take any action Buildingstars requests, including signing assignments or other documents. These actions are necessary to demonstrate Buildingstars' ownership and to help Buildingstars secure intellectual property rights in the item.
However, if the provision requiring assignment of ownership is deemed invalid or unenforceable, the franchisee grants Buildingstars a worldwide, perpetual, non-exclusive, and fully paid license to use and sublicense the ideas, concepts, techniques, or materials. This ensures that Buildingstars retains the right to utilize these innovations even if they cannot fully own them. This requirement ensures that Buildingstars maintains control over the intellectual property associated with its business system, protecting its brand and operational methods.