Who has the right to control litigation arising from infringement of the Buildingstars marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately of any apparent infringement or challenge to your use of any Mark, or any claim by any person of any rights in any Mark. We and our Affiliates will have the sole discretion to take such action as we deem appropriate and the right to exclusively control any litigation or administrative proceedings arising out of such infringement, challenge or claim. You must execute any and all instruments and documents, provide such assistance, and take any action that may be necessary or advisable to protect and maintain our interests in any litigation or other proceeding or otherwise to protect and maintain our interest in the Marks. The Franchise Agreement does not require us to participate in your defense and/or indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving a Mark or if the proceeding is resolved unfavorably to you.
Source: Item 13 — TRADEMARKS (FDD pages 27–28)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars and its Affiliates retain the sole discretion to take action and have the right to exclusively control any litigation or administrative proceedings arising out of infringement, challenge, or claim to their marks. This means that if someone infringes on the Buildingstars trademark, Buildingstars, not the franchisee, decides how to respond legally.
Buildingstars requires franchisees to immediately notify them of any apparent infringement or challenge to the use of any mark, or any claim by any person of any rights in any Mark. Franchisees must also execute any and all instruments and documents, provide assistance, and take any action that may be necessary or advisable to protect and maintain Buildingstars's interests in any litigation or other proceeding or otherwise to protect and maintain Buildingstars's interest in the Marks.
However, the Franchise Agreement does not require Buildingstars to participate in the franchisee's defense or indemnify them for expenses or damages if the franchisee is a party to an administrative or judicial proceeding involving a Mark, or if the proceeding is resolved unfavorably to the franchisee. This means that while Buildingstars controls the litigation, the franchisee may bear the costs if they are involved in a legal dispute regarding the trademarks and the outcome is not in their favor.
This is a fairly typical arrangement in franchising, where the franchisor maintains control over its brand and trademarks, as these are critical assets for the entire system. Franchisees benefit from the brand recognition but must adhere to the franchisor's decisions regarding trademark protection.