In what capacity do Buildingstars officers act when dealing with franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the officers, directors, employees, and agents of Buildingstars act solely in their representative capacity for Buildingstars, and not in any individual capacity, when dealing with franchisees. This means that any actions taken or decisions made by these individuals are on behalf of the company, Buildingstars, and not as individuals acting independently.
This distinction is important for a Buildingstars franchisee because it clarifies that the franchisee's relationship is with the corporation, Buildingstars, and not with any individual officer, director, employee, or agent. Any legal recourse or disputes would be directed towards the company rather than the individuals representing it. It also reinforces that these individuals are acting within the scope of their employment or agency with Buildingstars, limiting their personal liability in their dealings with franchisees.
This clause is a standard legal protection for corporations and their representatives in franchise agreements. It ensures that the franchisee understands the formal structure of the franchisor and the limitations of liability for individuals acting on its behalf. Franchisees should be aware of this distinction when communicating with Buildingstars representatives and understand that their agreements and obligations are with the company itself.