To which jurisdiction do Buildingstars franchisees and guarantors irrevocably submit?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, the obligation of this Section to mediate will not be binding with respect to claims brought by BUILDINGSTARS and relating to BUILDINGSTARS's trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by BUILDINGSTARS for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties.
B. Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between BUILDINGSTARS and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in St. Louis, MO when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the application of Missouri
law or to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims BUILDINGSTARS has relating to its trademarks, service marks, patents, or copyrights, including the Marks; claims relating to any lease or sublease of any real property between the parties or their affiliated entities; or requests by BUILDINGSTARS for temporary restraining orders, preliminary injunctions, permanent injunctions or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief when deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution of the actual dispute between the parties shall be brought in either federal or state courts in St. Louis County, MO. Both parties agree to submit to the jurisdiction of the state and federal court in St. Louis County, MO.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees and their guarantors must irrevocably submit to specific jurisdictions depending on the nature of the legal action. For general disputes arising from the franchise agreement, both parties and guarantors irrevocably submit to the jurisdiction of the Federal District Court in St. Louis, MO, provided the grounds set forth in 28 U.S.C.§ 1332 are present. This means that if the legal requirements for federal court jurisdiction are met (typically involving disputes between citizens of different states and exceeding a certain dollar amount), the case will be heard in this federal court.
However, the FDD stipulates exceptions to this general rule. Buildingstars can bring claims relating to its trademarks, service marks, patents, or copyrights, claims involving leases or subleases, or requests for injunctive relief in either federal or state courts located in St. Louis County, MO. In these specific types of cases, both parties agree to submit to the jurisdiction of the state and federal courts in St. Louis County, MO.
In the event that the Federal District Court in St. Louis, MO, lacks jurisdiction over a general dispute, the parties are required to submit to binding arbitration. This indicates that Buildingstars seeks to resolve disputes through litigation in Missouri, but provides for arbitration as an alternative dispute resolution method if the federal court lacks jurisdiction. Prospective franchisees should be aware of these jurisdictional requirements and the potential implications of litigating or arbitrating disputes in Missouri.