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Is it a scam that a Franchise builders charges a client for bespoke plans and...

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Chris

Is it a scam that a Franchise builders charges a client for bespoke plans and then trademarks them as their own? This is what is happening when a client of a Franchise builder shopped around for a price to see if the price they are getting charged is competitive. Then the Franchise threatens to sue to try and force the client to pay over the top. We are all aware that the cost of a franchise builder can add between 6-10% by royalties and commissions, but it seems ownership of plans that the customer has ultimately briefed the designer, paid for is now the Franchise ownership. SCAM.
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Chris

Hi Chris, To avoid confusion I’ll mention I’m also called Chris. I’ve written on this blog a number of times previously, mainly on the topic of building contracts (make sure the contract is satisfactory/fair before giving a builder any money), and PC sums/Provisional Items (fine if they are used for the purposes for which they are intended, and you are satisfied the amounts are reasonable). I think this topic of copyright and ‘ownership’ of builders’ ‘standard plans’ comes into a similar category as builders’ ‘standard contracts’. By which I mean it’s up to the client to think about the legal aspects of this, and sort these out with the builder, before paying the builder (or his architect/designer) any money, or letting them do any work. As a rule architects/designers will just automatically stick some kind of wording that says they own the copyright of their drawings/designs on everything they produce. If you let them do that you’re stuck with the result, that you can only use those drawings/designs with their permission, as they do not belong to you. They might claim this is fair, because as it was all being done through the builder (who is their regular client) so they did the work at a subsidised cost. Which may sometimes be true. So I suggest that if you believe you are going to pay the full unsubsidised cost of your bespoke drawings (which are not just minor amendments to the builder’s standard drawings), then you say up-front that you expect the copyright to belong to you. Or if you want to compromise you can get them to agree that you will all share the copyright. So they can give the design to other clients if any of them really love your design, but you are free to take the design to other builders if you can’t reach an agreement with the original one. A lot of people seem to have missed the point that before you give them any money, or sign anything, everything is up for negotiation. If they’re not willing to talk about this kind of thing in a reasonable way then find another builder.
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