Can Buildingstars and its Affiliates derive revenue from a Buildingstars franchisee's purchases or leases?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Rights Reserved by BUILDINGSTARS and Affiliates. BUILDINGSTARS and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–19)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars and its affiliates have certain rights regarding the sale of products and services. Buildingstars and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. Buildingstars, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. Buildingstars and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
This means that Buildingstars and its affiliates can operate businesses using the Buildingstars system and trademarks, franchise or license others to do so, and sell products/services through various channels, potentially competing with franchisees. They can operate similar businesses under different brands or systems, expanding their reach beyond the Buildingstars franchise network. They can also sell products wholesale or provide management/consulting services, creating additional revenue streams.
For a prospective franchisee, this indicates that Buildingstars and its affiliates have broad rights to operate and expand their business, which could include activities that generate revenue from the same types of products and services that a franchisee offers. This could create competition or impact the franchisee's potential customer base. It is important for a prospective franchisee to understand the scope of these rights and how they might affect their business operations and revenue potential.