Who is considered the '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 varies depending on the legal structure of the franchisee. If the franchisee is a partnership, the partners owning the partnership are considered the Principal Owners.
This definition is important because the Principal Owner typically has specific obligations and responsibilities within the franchise agreement. For instance, the FDD states that the Principal Owner must successfully complete the Initial Training Program. This ensures that the individuals with the most significant stake in the business are properly trained and equipped to manage the Buildingstars franchise.
Understanding who is designated as the Principal Owner is crucial for compliance with the franchise agreement and for determining who has the authority to make key decisions for the business. Prospective Buildingstars franchisees should carefully review this definition and ensure that all partners are aware of their roles and responsibilities as Principal Owners.