Does the mediation obligation apply to claims brought by Buildingstars relating to its trademarks?

According to Buildingstars's 2025 Franchise Disclosure Document, the obligation to mediate disputes does not apply to claims brought by Buildingstars relating to its trademarks. This means that if Buildingstars believes a franchisee is infringing on its trademarks, service marks, patents, or copyrights, Buildingstars is not required to participate in mediation before taking legal action. This also applies to 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.

This exception to the mediation requirement gives Buildingstars the ability to quickly address potential infringements or other urgent matters without the delay associated with mediation. This is a common practice in franchising, as franchisors often need to protect their intellectual property and brand standards swiftly. However, for a franchisee, this means that Buildingstars can immediately pursue legal action against them in certain situations, potentially leading to significant legal expenses and business disruption.

It is important for a prospective Buildingstars franchisee to understand this provision and its implications. While mediation can be a cost-effective way to resolve disputes, Buildingstars retains the right to bypass this process in specific cases. Franchisees should be aware of the potential for immediate legal action and ensure they fully comply with all trademark and intellectual property guidelines outlined in the franchise agreement. This also applies to 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.