What happens to ideas, concepts, techniques, or materials concerning a Buildingstars franchisee's business and the System?
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 Buildingstars' 2025 Franchise Disclosure Document, any ideas, concepts, techniques, or materials related to the Buildingstars business, regardless of whether they are protectable intellectual property, must be promptly disclosed to Buildingstars. This applies whether these innovations are created by the franchisee, their owners, or employees.
These innovations are deemed the sole and exclusive property of Buildingstars, becoming part of the Buildingstars system and considered works made-for-hire for Buildingstars. If any item does not legally qualify as a work made-for-hire, the franchisee is obligated to assign ownership and all related rights to Buildingstars. The franchisee must also take any actions, such as signing assignments or other documents, that Buildingstars requests to demonstrate their ownership or to help Buildingstars secure intellectual property rights.
However, if this provision is found to be invalid or unenforceable, the franchisee grants Buildingstars a worldwide, perpetual, non-exclusive, and fully paid license to use and sublicense the use of these ideas, concepts, techniques, or materials. This ensures that Buildingstars retains the right to utilize any innovations developed within the franchise network, even if the initial ownership provisions are challenged.