Who owns the ideas, concepts, techniques, or materials concerning the Buildingstars business created by the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Innovations. All ideas, concepts, techniques or materials concerning the Business, whether or not protectable intellectual property and whether created by FRANCHISEE or its owners or employees, must be promptly disclosed to BUILDINGSTARS and will be deemed to be BUILDNGSTARS' sole and exclusive property, part of the System, and works made-for-hire for BUILDINGSTARS. To the extent any item does not qualify as a "work made-for-hire" for BUILDINGSTARS, FRANCHISEE must assign ownership of that item and all related rights to that item, to BUILDINGSTARS and must take whatever action (including signing assignments or other documents) BUILDINGSTARS requests to show BUILDINGSTARS' ownership or help BUILDINGSTARS obtain intellectual property rights in the item. However, if this provision is found to be invalid or unenforceable, FRANCHISEE grants to BUILDINGSTARS a worldwide, perpetual, non-exclusive and fully paid license to use and sublicense the use of the ideas, concepts, techniques or materials.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, any ideas, concepts, techniques, or materials related to the Buildingstars business, whether or not they are protectable intellectual property, are considered Buildingstars's sole and exclusive property. This applies regardless of whether these creations come from the franchisee, their owners, or their employees.
This means that if a franchisee develops a new method for cleaning, a marketing strategy, or any other innovation related to the Buildingstars business, they must promptly disclose it to Buildingstars. Buildingstars will then own the rights to that innovation. The FDD states that these creations are considered "works made-for-hire" for Buildingstars.
However, if the "work made-for-hire" provision is deemed invalid or unenforceable, the franchisee grants Buildingstars a worldwide, perpetual, non-exclusive, and fully paid license to use and sublicense the use of these ideas, concepts, techniques, or materials. This ensures that Buildingstars can still utilize the franchisee's innovations even if the initial ownership clause is challenged. The franchisee is obligated to take any action, including signing assignments or other documents, to demonstrate Buildingstars's ownership or help Buildingstars obtain intellectual property rights.