For Buildingstars, what is the definition of 'Principal Owners' if the franchisee is a partnership?
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 a partnership, the partners owning the partnership are considered the 'Principal Owners'. This definition is important because Buildingstars requires Principal Owners to participate directly in the operation and management of the franchised Business.
This means that all partners who own the partnership must actively engage in the Business and supervise its operations at all times. Furthermore, these Principal Owners are required to satisfactorily complete Buildingstars' Initial Training Program and maintain the confidentiality of Buildingstars' confidential information and trade secrets.
This requirement ensures that those with a vested interest in the Buildingstars franchise are actively involved in upholding the brand's standards and protecting its proprietary information. Prospective franchisees entering a partnership should be aware of these obligations and ensure that all partners are prepared to meet these requirements.