Does the mediation requirement apply to Buildingstars' claims relating to trademarks?
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is not obligated to mediate claims relating to its trademarks, service marks, patents, or copyrights. This means that Buildingstars can immediately pursue legal action in court to protect its intellectual property without first attempting to resolve the dispute through mediation. This clause also applies to claims regarding leases or subleases of real property between Buildingstars and the franchisee, and requests for temporary restraining orders, preliminary injunctions, or permanent injunctions.
This exception to the mediation requirement benefits Buildingstars by allowing them to act quickly to protect their brand and business interests. Intellectual property disputes, such as trademark infringement, often require swift action to prevent further damage. Similarly, disputes involving real property or requests for injunctive relief may necessitate immediate court intervention to preserve the status quo or prevent irreparable harm.
For a prospective Buildingstars franchisee, this means that disputes with Buildingstars may not always be subject to mediation. While mediation can be a cost-effective and less adversarial way to resolve conflicts, Buildingstars retains the right to bypass mediation in certain critical areas. Franchisees should be aware of this provision and understand that Buildingstars may choose to litigate trademark or other specified claims directly. This could potentially lead to higher legal costs and a more formal dispute resolution process for the franchisee.