Who is considered the 'Principal Owner' of a Buildingstars franchise if the franchisee is an individual?
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, if the franchisee is an individual or multiple individuals, then the franchisee(s) themselves are considered the 'Principal Owner(s).' This definition is important because the 'Principal Owner' is the person who must complete the initial training program.
This means that if you are purchasing a Buildingstars franchise as an individual, you are considered the Principal Owner and must complete the initial training. If you are purchasing the franchise with a partner, both of you are considered Principal Owners and must complete the training.
Understanding who is designated as the Principal Owner is crucial for fulfilling the obligations outlined in the franchise agreement, particularly regarding training and operational responsibilities. Prospective franchisees should be aware of this designation and its implications for their involvement in the business.