What law applies to disputes in the Federal District Court between Buildingstars and the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Missouri law applies to controversies, disputes, or claims between Buildingstars and the franchisee that are filed in the Federal District Court in St. Louis, MO, provided the grounds set forth in 28 U.S.C. § 1332 are present. Both parties and any guarantors of the agreement irrevocably submit to the jurisdiction of this court and waive any objection to the application of Missouri law.
This means that if a franchisee has a dispute with Buildingstars related to the franchise agreement and the dispute meets the requirements for federal court jurisdiction under 28 U.S.C. § 1332 (typically involving disputes between citizens of different states with an amount in controversy exceeding $75,000), the case will be heard in the Federal District Court in St. Louis, MO, and Missouri law will be applied. The franchisee is agreeing to this arrangement in advance and waiving the right to object to Missouri law being used or to the court's location.
However, if the federal court does not have jurisdiction over the dispute, the parties will submit to binding arbitration. Additionally, claims Buildingstars has relating to its trademarks, service marks, patents, or copyrights; claims relating to any lease or sublease of any real property between the parties; or requests by Buildingstars for temporary restraining orders, preliminary injunctions, permanent injunctions, or other proceedings to obtain interim or permanent relief will be brought in either federal or state courts in St. Louis County, MO, and both parties agree to submit to the jurisdiction of those courts.