Are ideas, concepts, techniques, or materials concerning a Buildingstars franchisee's business considered works made-for-hire for Buildingstars?
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's 2025 Franchise Disclosure Document, any innovations related to the Buildingstars business are considered the sole property of Buildingstars. This includes all ideas, concepts, techniques, or materials concerning the business, regardless of whether they are protectable intellectual property. This applies whether these innovations are created by the franchisee, their owners, or employees.
The FDD states that franchisees must promptly disclose any such innovations to Buildingstars. These innovations will be deemed part of the Buildingstars system and classified as "works made-for-hire" for Buildingstars. This means Buildingstars owns the rights to these innovations.
If any item does not legally qualify as a "work made-for-hire," the franchisee must still assign ownership and all related rights to Buildingstars. The franchisee is obligated to take any action, including signing assignments or other documents, to demonstrate Buildingstars' ownership or help Buildingstars obtain intellectual property rights. However, if this provision is found invalid or unenforceable, the franchisee grants Buildingstars a worldwide, perpetual, non-exclusive, and fully paid license to use and sublicense the use of these innovations.