Who is considered a 'Principal Owner' of a Buildingstars franchise if the franchisee is a partnership?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. "Principal Owner(s)" 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, the 'Principal Owner(s)' of a Buildingstars franchise, if the franchisee is structured as a partnership, are defined as the partners owning the partnership. This definition is important because the Principal Owner often has specific obligations and responsibilities under the franchise agreement.
This definition clarifies who Buildingstars will consider responsible for fulfilling the franchisee's obligations. For example, the FDD states that Buildingstars will provide initial training for one of the Principal Owners.
Prospective franchisees entering into a partnership should understand that all partners owning the partnership will be considered Principal Owners and will be subject to the terms and conditions of the franchise agreement. This ensures that Buildingstars has a clear point of contact and accountability within the franchisee's organization.