What is the consequence if Buildingstars fails to deliver the franchise disclosure document on time?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
If we offer you a franchise, we must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, us or an affiliate in connection with the proposed franchise sale.
If we do not deliver this franchise disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified in Exhibit I.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if Buildingstars does not deliver the Franchise Disclosure Document (FDD) within the mandated timeframe, or if the FDD contains false, misleading, or omits material information, it could lead to a violation of both federal and state laws.
Specifically, Buildingstars is required to provide the FDD to prospective franchisees at least 14 calendar days before they sign any binding agreement or make any payment related to the franchise. Failure to comply with this 14-day rule, or providing a deficient FDD, can have legal repercussions for Buildingstars.
In such cases, the FDD advises that the potential violation should be reported to the Federal Trade Commission (FTC) in Washington, D.C., as well as to the appropriate state agency. Exhibit I of the FDD contains a list of state agencies and agents authorized to receive service of process for each state. This allows a Buildingstars franchisee to take action if they believe they have been provided with an untimely or inaccurate FDD.