Who is considered a 'Principal Owner' of a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. "Principal Owner" means the FRANCHISEE if FRANCHISEE is an individual or more than one individual, the shareholder(s) of FRANCHISEE if FRANCHISEE is a corporation, the partner(s) owning the partnership if FRANCHISEE is a partnership, or the member(s) and/or manager if the FRANCHISEE is a limited liability company.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a 'Principal Owner' is defined based on the legal structure of the franchisee. If the franchisee is an individual or multiple individuals, then the franchisee(s) themselves are considered the Principal Owner(s).
For franchisees structured as corporations, the shareholder(s) are considered the Principal Owner(s). If the franchisee operates as a partnership, the partner(s) owning the partnership are designated as the Principal Owner(s).
Finally, if the Buildingstars franchise is owned by a limited liability company (LLC), the member(s) and/or manager of the LLC are considered the Principal Owner(s). This definition is important because the FDD specifies that initial training is provided to one of the Principal Owners, and satisfactory completion of this training is required for the franchisee to begin operations.