Are there any exceptions to the litigation clause for Buildingstars?
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.
B. Litigation. Except as otherwise provided in this Agreement, all controversies, disputes or claims between BUILDINGSTARS and FRANCHISEE arising from this Agreement or the franchise relationship set forth in this Agreement shall be filed in the Federal District Court in St. Louis, MO when the grounds set forth in 28 U.S.C.§ 1332 are present. Both parties and each guarantor of this Agreement irrevocably submit to the jurisdiction of this court and waive any objection to the application of Missouri law or to the jurisdiction or venue in this court. In the event that the above-referenced federal court does not have jurisdiction over the dispute, the parties shall submit to binding arbitration as provided below.
Notwithstanding the foregoing, any claims BUILDINGSTARS has relating to its 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 shall be brought in either federal or state courts in St. Louis County, MO. Both parties agree to submit to the jurisdiction of the state and federal court in St. Louis County, MO.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, there are exceptions to the standard litigation clause. While general disputes between Buildingstars and a franchisee are typically filed in the Federal District Court in St. Louis, MO, claims pertaining to specific issues can be pursued in either federal or state courts in St. Louis County, MO. If the federal court lacks jurisdiction, the parties must submit to binding arbitration.
Specifically, Buildingstars may bring claims relating to its trademarks, service marks, patents, or copyrights, including the Marks, in either federal or state courts in St. Louis County, MO. This also applies to claims regarding any lease or sublease of real property between Buildingstars and the franchisee or their affiliated entities. Additionally, Buildingstars can request temporary restraining orders, preliminary injunctions, permanent injunctions, or other proceedings in a court of competent jurisdiction to obtain interim or permanent relief if the court deems it necessary to preserve the status quo or prevent irreparable injury while the dispute is being resolved.
This means that a Buildingstars franchisee could face litigation in multiple venues depending on the nature of the claim. It is important to note that both parties agree to submit to the jurisdiction of the state and federal court in St. Louis County, MO, for these specific types of claims. This clause outlines specific circumstances where Buildingstars is not obligated to mediate, allowing them to directly pursue legal action to protect their interests related to intellectual property and real property matters.