Does Buildingstars acknowledge that a franchisee may sustain losses from operating or closing the business?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
have the right, but not the obligation, to enforce FRANCHISEE'S compliance with any provision of this Agreement.
- T. Joinder of Individuals. As a condition of granting the rights and interests to FRANCHISEE provided for in this Agreement, BUILDINGSTARS may require that certain individuals execute the limited agreement provided for on the signature page to this Agreement and the effectiveness of this Agreement shall be expressly conditioned upon the execution of the limited agreement by all individuals that may be required by BUILDINGSTARS.
XVII. WARRANTIES AND REPRESENTATIONS OF FRANCHISEE
- A. FRANCHISEE has been advised to make an independent investigation of BUILDINGSTARS' operations. BUILDINGSTARS has not and does not represent that FRANCHISEE can expect to attain a specific level of sales, profits, or earnings. FRANCHISEE has been advised to obtain independent professional advice regarding this franchise. FRANCHISEE understands that it may sustain losses as a result of the operation or the closing of the business.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars acknowledges that a franchisee may sustain losses from operating or closing their business. The FDD states that Buildingstars has not represented that a franchisee can expect to attain a specific level of sales, profits, or earnings.
The document advises prospective franchisees to make an independent investigation of Buildingstars' operations and to obtain independent professional advice regarding the franchise. This suggests that Buildingstars recognizes the potential for financial risk and advises franchisees to conduct their own due diligence before investing.
Furthermore, the FDD emphasizes that the success of the Buildingstars business is speculative and depends largely on the franchisee's abilities as an independent businessperson, as well as other factors. Buildingstars makes no representations or warranty as to the potential success of the business, and no one is authorized to make any such representations or warranties.