What happens to a Buildingstars franchisee's right to use the marks if the agreement between BUILDINGSTARS and its Parent terminates?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Our affiliate, Buildingstars, Inc. owns the following principal trademarks and service marks on the Principal Register of the United States Patent and Trademark Office. It has an agreement with BUILDINGSTARS which permits us to use the Marks and to sublicense the use of the Marks pursuant to a Franchise Agreement. In the event that the agreement between BUILDINGSTARS and its Parent terminate for any reason, its Parent will honor your rights to use the Marks under the terms and conditions of your Franchise Agreement. There are no agreements currently in effect which significantly limit the rights of BUILDINGSTARS to use or license the use of the Marks in any manner material.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars, Inc. owns the trademarks and service marks and has an agreement with BUILDINGSTARS that allows BUILDINGSTARS to use the marks and sublicense them to franchisees. If the agreement between BUILDINGSTARS and its parent company terminates for any reason, the parent company will honor the franchisee's rights to use the marks under the terms and conditions of the Franchise Agreement. This provides some assurance to franchisees that their right to use the Buildingstars trademarks will continue even if the relationship between Buildingstars and its parent company changes.
This arrangement is designed to protect franchisees' investments in their businesses, which rely heavily on the use of the Buildingstars brand. Without the right to use the trademarks, a franchisee's ability to operate and attract customers would be severely compromised. The FDD also states that there are no agreements currently in effect that significantly limit the rights of BUILDINGSTARS to use or license the use of the Marks in any manner material.
It is important for prospective franchisees to carefully review the terms and conditions of the Franchise Agreement to fully understand their rights and obligations regarding the use of the Buildingstars marks. While the parent company's commitment to honor the franchisee's rights provides some security, franchisees should be aware of any potential limitations or restrictions on their use of the marks, as outlined in the Franchise Agreement. Understanding these details is crucial for making an informed decision about investing in a Buildingstars franchise.