Does the litigation clause apply to Buildingstars' claims relating to trademarks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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' 2025 Franchise Disclosure Document, the litigation clause does not fully apply to Buildingstars' claims relating to trademarks. Specifically, Buildingstars can bring claims relating to its trademarks, service marks, patents, or copyrights in either federal or state courts in St. Louis County, MO. Both parties agree to submit to the jurisdiction of these courts. This differs from the standard litigation clause, which dictates that disputes between Buildingstars and the franchisee are to be filed in the Federal District Court in St. Louis, MO, under certain conditions.
This exception to the standard litigation clause gives Buildingstars more control over where trademark-related disputes are litigated. It allows Buildingstars to choose between federal and state courts within St. Louis County, MO, which may be advantageous to them based on the specifics of the case. This could be because Buildingstars is headquartered in St. Louis, and it is more convenient for them to litigate there.
For a prospective franchisee, this means that if Buildingstars brings a claim against them related to trademarks, the franchisee may have to litigate the matter in St. Louis County, MO, regardless of where their franchise is located. This could increase the franchisee's legal costs and inconvenience, as they may need to hire attorneys familiar with Missouri law and travel to St. Louis for court proceedings. It is important for franchisees to understand this potential obligation and factor it into their decision to invest in a Buildingstars franchise.