For Buildingstars, what is the definition of 'Principal Owners' if the franchisee is an individual?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- I. "Principal Owner" 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 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 28–29)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if the franchisee is an individual or consists of multiple individuals, then the franchisee(s) themselves are considered the 'Principal Owner(s).' This definition is important because Buildingstars requires the Principal Owner to actively participate in the operation and management of the franchised business.
This requirement means that if you are an individual or a group of individuals entering into a Buildingstars franchise agreement, you are expected to be directly involved in the day-to-day operations and decision-making of the business. This hands-on approach ensures that the franchisee is committed to upholding Buildingstars' standards and maintaining the quality of service associated with the brand.
Furthermore, the Principal Owner must complete the initial training program provided by Buildingstars and maintain the confidentiality of the company's trade secrets and confidential information. This underscores the importance of the Principal Owner's role in safeguarding the brand's proprietary information and adhering to the operational guidelines established by Buildingstars.