Who has the right to control litigation involving the Buildingstars marks?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Contest of Marks. FRANCHISEE will not directly or indirectly contest or aid in contesting the validity or ownership of the Marks, trade secrets, methods, procedures and advertising techniques which are part of the System, or contest BUILDINGSTARS and BUILDINGSTARS' Affiliates' right to register, use or license others to use such names and Marks, trade secrets, methods, procedures and techniques. FRANCHISEE will not at any time (whether during the term of this Agreement or after expiration or termination thereof) directly or indirectly commit an act of infringement. FRANCHISEE agrees to promptly notify BUILDINGSTARS of any claim, demand, or suit based upon or arising from any attempt by anyone else to use the Marks, or any colorable variation thereof. BUILDINGSTARS or BUILDINGSTARS' Affiliates shall have the sole discretion to determine if they will defend the use of the Marks, and they are not obligated to defend the Marks. BUILDINGSTARS or BUILDINGSTARS' Affiliates have the right to control any administrative proceeding or litigation involving the Marks. FRANCHISEE shall execute any and all instruments and documents, render assistance, and do such acts as may, in the opinion of BUILDINGSTARS' counsel, be necessary or advisable to protect the interests of BUILDINGSTARS or its Affiliates in any such litigation, or proceedings, or to otherwise protect and maintain the interest of BUILDINGSTARS or its Affiliates in the Marks.
- C. Change of Marks. BUILDINGSTARS shall have the right to change the Marks to be used by FRANCHISEE at any time and for any reason it deems appropriate. FRANCHISEE shall pay the costs associated with such change and shall make such necessary changes promptly.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars or its affiliates retain the right to control any administrative proceeding or litigation involving the Buildingstars marks. This means that Buildingstars, not the franchisee, will make the decisions regarding legal defense or action related to the trademarks.
As a Buildingstars franchisee, you are required to notify Buildingstars immediately of any potential infringement or unauthorized use of the Buildingstars marks. You must also assist Buildingstars in protecting its interests in any litigation or proceedings related to the marks by executing documents and providing necessary assistance as directed by Buildingstars' counsel.
This clause is typical in franchise agreements, as the franchisor needs to protect its brand and trademarks uniformly. However, it's important to note that Buildingstars is not obligated to defend the marks, leaving open the possibility that they may choose not to pursue legal action even if infringement occurs. This could potentially impact a franchisee if the infringement causes confusion or damages their business reputation. Buildingstars also has the right to change the marks used by the franchisee at any time, and the franchisee is responsible for the costs associated with such changes.