What is the condition for determining Buildingstars' maximum aggregate liability to a franchisee?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars's maximum aggregate liability, including that of its officers, owners, directors, members, managers, employees, affiliates, parents, or subsidiaries, for claims relating to the franchise agreement is limited to the amount the franchisee paid to Buildingstars within the 12 months immediately before Buildingstars receives written notice of a claim.

This means that if a franchisee has a dispute with Buildingstars, the maximum amount they can recover is capped by the payments they've made to Buildingstars in the year leading up to the claim. This could be significantly less than the franchisee's actual losses, especially if the claim arises early in the franchise term or if the franchisee's payments to Buildingstars are relatively low compared to their overall investment and operating costs.

This limitation of liability is a significant factor for prospective franchisees to consider. It effectively places a ceiling on Buildingstars's financial responsibility, regardless of the severity of the franchisee's damages. Franchisees should carefully evaluate their potential risks and consider whether this limitation adequately protects their interests. It is also important to note that this limitation applies collectively to Buildingstars and all of its related parties, meaning that the franchisee cannot recover more than the specified amount from any combination of these entities.