Does the Buildingstars agreement specify that officers act only in a representative capacity?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- E.
Representative Capacity.
In all of their dealings with FRANCHISEE, the officers, directors, employees and agents of BUILDINGSTARS act only in their representative capacity for BUILDINGSTARS, and not in any individual capacity.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement specifies that officers, directors, employees, and agents act only in a representative capacity. This means that when Buildingstars's officers, directors, employees, and agents interact with franchisees, they are acting on behalf of Buildingstars and not in their individual capacity.
This provision protects the officers, directors, employees, and agents of Buildingstars from potential personal liability in their dealings with franchisees. It clarifies that Buildingstars, as a corporate entity, is the responsible party in the franchise relationship, not the individuals who work for the company.
For a prospective franchisee, this clause means they cannot pursue individual officers, directors, employees, or agents of Buildingstars for actions related to the franchise agreement. Any legal claims or disputes must be directed towards Buildingstars as a company. This is a fairly standard clause in franchise agreements, designed to protect the individuals working for the franchisor from personal liability.