For Buildingstars, to whose benefit does the Franchise Agreement inure?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
RANCHISEE agrees to furnish to BUILDINGSTARS financial reports as shall be requested by BUILDINGSTARS from time to time pursuant to or in connection with this Agreement or as specified in the Confidential Operations Manual. FRANCHISEE shall establish a business checking account and will continue to maintain a business checking account throughout the term of this Agreement.
VIII. PROPRIETARY MARKS
A. Right to Use Marks. FRANCHISEE acknowledges that "Buildingstars" is a valid service and/or trademark, which is licensed to BUILDINGSTARS. FRANCHISEE recognizes that valuable goodwill is attached to the Marks, and that it will use the same only in the manner and to the extent specifically licensed by this Agreement. Any goodwill arising out of FRANCHISEE'S use of the Marks inures to the benefit of BUILDINGSTARS and BUILDINGSTARS' Affiliates. FRANCHISEE further acknowledges that the right to use said Marks and the grant contained in this Agreement is nonexclusive, and that BUILDINGSTARS and/or its Affiliates, in their sole discretion, have the right themselves to operate businesses under said Marks on any terms and conditions BUILDINGSTARS deems fit. Any unauthorized use of the Marks by the FRANCHISEE in any medium whatsoever is a breach of this Agreement and an infringement of the rights of BUILDINGSTARS. FRANCHISEE agrees that the unauthorized use of BUILDINGSTARS' Marks will constitute irreparable harm to BUILDINGSTARS, and FRANCHISEE expressly waives any requirement that BUILDINGSTARS post security in order to obtain injunctive relief in connection with such use. All provisions of this Agreement applicable to the Marks apply to any additional trademarks, service marks, and commercial symbols hereafter authorized for use by and licensed to the FRANCHISEE.
- B. Contest of Marks.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, any goodwill that arises from a franchisee's use of Buildingstars's marks inures to the benefit of Buildingstars and its affiliates. This means that while franchisees are granted the right to use the Buildingstars trademarks and service marks, the value and reputation associated with those marks ultimately benefit Buildingstars.
This clause is standard in most franchise agreements. It ensures that the brand's value remains with the franchisor, even though individual franchisees contribute to building that value through their operations. Buildingstars retains control over its brand and can ensure consistency across all franchise locations.
Additionally, the terms of Section X of the Franchise Agreement are assignable by Buildingstars and will benefit Buildingstars, its successors, and assigns. In the event of any assignment, sale, merger, or change in ownership or structure of Buildingstars, the resulting entity will assume the position of Buildingstars without requiring additional consent from or notice to the franchisee, as if the term Buildingstars were defined in the agreement to include such entity.