Under what circumstances is the Buildingstars agreement governed by the U.S. Trademark Act?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE acknowledges that this Agreement was accepted in the State of Missouri.
Except to the extent that this Agreement or any particular dispute is governed by the U.S.
Trademark Act of 1946 (Lanham Act, 115 U.S.C. 1051), this Agreement will be governed, to the extent permissible, by the laws of the State of Missouri (without reference to its conflict of laws principles).
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by the laws of the State of Missouri. However, there is a specific exception: the agreement or any particular dispute related to it will be governed by the U.S. Trademark Act of 1946, also known as the Lanham Act (115 U.S.C. 1051), to the extent permissible under the law.
This means that federal trademark law will take precedence over Missouri state law when trademark issues are involved in the Buildingstars franchise agreement. This is particularly relevant because Buildingstars licenses its trademarks to franchisees, and the agreement outlines specific rules regarding the use and protection of those marks. Disputes over unauthorized use, infringement, or the validity of the Buildingstars trademarks would likely fall under the jurisdiction of the Lanham Act.
For a prospective Buildingstars franchisee, this clause is important because it clarifies which laws will govern different aspects of the franchise relationship. While most contractual matters will be subject to Missouri law, trademark-related disputes will be handled under federal law. Franchisees should be aware of their rights and obligations under both Missouri state law and the Lanham Act to ensure they are in compliance and can protect their interests. It is advisable to consult with an attorney experienced in both franchise law and trademark law to fully understand the implications of this provision.