Does the litigation clause apply to claims Buildingstars has relating to its 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's 2025 Franchise Disclosure Document, the standard litigation clause does not fully apply to claims Buildingstars brings related to its trademarks, service marks, patents, or copyrights. Instead, Buildingstars can bring these claims in either federal or state courts located in St. Louis County, MO. Both parties agree to submit to the jurisdiction of these courts.
This means that Buildingstars retains more control over where legal proceedings concerning its intellectual property take place, which is a significant advantage for the franchisor. A franchisee would not be able to force arbitration or insist on a different venue for these specific types of disputes.
This clause is fairly common in franchise agreements, as franchisors typically want to protect their trademarks and intellectual property rights vigorously. By specifying the jurisdiction, Buildingstars aims to streamline the legal process and ensure consistency in how these matters are handled. Prospective franchisees should be aware of this clause and understand that any disputes related to Buildingstars's trademarks will be litigated in the specified courts.