What constitutes an 'Interest' in a Buildingstars franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
their spouses owning any interest in FRANCHISEE if it is a partnership; and (c) all of the individuals and their spouses owning any interest in FRANCHISEE if it is a sole proprietorship. For purposes of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
- F. "Interest" means: (a) this Agreement or the rights under this Agreement; (b) the rights in the Business; (c) an individual's rights as an owner of the Business (including any owner's stock, partnership interest, limited liability company, or other ownership interest); (d) any option, call, warrant, conversion rights or rights to acquire any equity or voting interest in FRANCHISEE; (e) any security interest, lien, pledge, mortgage, or other encumbrance of any of the foregoing Interest; or (f) any right to control, operate or manage the Business.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, an 'Interest' in the franchise encompasses a broad range of rights and ownership aspects related to the franchise agreement and the business itself. For the purpose of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
Specifically, an 'Interest' includes the franchise agreement itself, along with all the rights granted within it. It also covers the rights associated with operating the Buildingstars cleaning business. Furthermore, it extends to an individual's rights as an owner, including any stock, partnership interest, limited liability company membership, or other form of ownership stake in the franchise.
In addition to direct ownership, an 'Interest' also includes any options, calls, warrants, or conversion rights that could potentially lead to acquiring equity or voting interest in the Buildingstars franchise. It also encompasses any security interest, lien, pledge, mortgage, or other encumbrance placed on any of the aforementioned interests. Finally, an 'Interest' includes any right to control, operate, or manage the Buildingstars business, regardless of formal ownership.