If Buildingstars chooses to bring an action regarding copyright infringement, who controls the action?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must also promptly tell us when you learn about unauthorized use of this copyrighted material. BUILDINGSTARS is not obligated to take any action but will respond to this information in a manner we think is appropriate. We need not protect or defend copyrights, although we intend to do so if in the system's best interests. We may control any action we choose to bring, even if you voluntarily bring the matter to our attention. We need not participate in your defense and/or indemnify you for damages or expenses in a proceeding involving a copyright.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 28)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars retains control over any legal action it chooses to initiate regarding copyright infringement, even if the franchisee brings the matter to their attention. This means that Buildingstars has the sole discretion to decide whether or not to pursue legal action to protect its copyrights.
This clause is significant for prospective franchisees because it clarifies that while franchisees are expected to report any unauthorized use of Buildingstars' copyrighted material, Buildingstars is not obligated to act on every report. Buildingstars will assess the situation and respond in a manner it deems appropriate, based on the best interests of the franchise system as a whole.
Furthermore, Buildingstars does not have to participate in the franchisee's defense or indemnify them for damages or expenses if the franchisee is involved in a legal proceeding related to copyright. This highlights the importance of franchisees adhering to the guidelines for using Buildingstars' copyrighted materials and seeking legal counsel if they face any copyright-related claims. Buildingstars retains the right to control any action they choose to bring, regardless of whether the franchisee brought the matter to their attention.