How does Buildingstars define 'Principal Owner' in the franchise agreement?

According to Buildingstars' 2025 Franchise Disclosure Document, the term 'Principal Owner' is specifically defined within the franchise agreement. If the franchisee is an individual, then the franchisee is considered the Principal Owner. If the franchisee consists of multiple individuals, then all of them are considered Principal Owners.

For franchisees that are corporations, the shareholder(s) of the corporation are considered the Principal Owner(s). If the franchisee is a partnership, the partner(s) owning the partnership are the Principal Owners. Lastly, if the franchisee is a limited liability company, the member(s) and/or manager are considered the Principal Owner(s).

This definition is important because the franchise agreement places specific obligations and grants certain rights to the Principal Owner(s). For example, Buildingstars provides initial training for the operation of the business to one of the Principal Owners and one other person. Understanding who qualifies as a Principal Owner is crucial for determining who can participate in training programs and who bears the responsibilities outlined in the franchise agreement.