Does the Buildingstars definition of 'Interest' include the right to control the Business?
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, the definition of "Interest" does include the right to control, operate, or manage the business.
Specifically, the FDD defines "Interest" broadly to cover various aspects of ownership and rights associated with the Buildingstars franchise. This includes not only the franchise agreement itself and the rights it grants but also an individual's rights as an owner, such as stock, partnership interest, or membership in a limited liability company.
Importantly, the definition extends to any rights to control, operate, or manage the Buildingstars business. This means that any agreement, option, or security interest that grants someone the ability to direct the business's activities falls under the umbrella of "Interest" as defined in the franchise agreement.
For a prospective Buildingstars franchisee, this comprehensive definition is significant because it affects how ownership and control can be transferred or encumbered. Buildingstars retains the right to approve any transfer of interest, ensuring that any new party involved meets their standards and that the integrity of the franchise system is maintained.