Does the Buildingstars FDD allow Buildingstars to be held liable for the franchisee's debts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS and FRANCHISEE are independent contractors, and no partnership, fiduciary, joint venture, or employment relationship exists between them, in any respect. FRANCHISEE shall conspicuously identify itself at the premises of the Business and in all dealings with the public as the owner of the business. BUILDINGSTARS shall not be involved in the day-to-day management or control of the Business. Neither BUILDINGSTARS nor FRANCHISEE shall make any agreements or representations in the name of or on behalf of the other that their relationship is other than franchisor and franchisee. Under no circumstances shall BUILDINGSTARS be liable for any act, omission, debt, or other obligation of FRANCHISEE.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars will not be held liable for the franchisee's debts. The FDD states that Buildingstars and the franchisee are independent contractors, and no partnership, fiduciary, joint venture, or employment relationship exists between them.
Buildingstars is not involved in the day-to-day management or control of the franchisee's business. Neither Buildingstars nor the franchisee can make agreements or representations on behalf of the other that their relationship is other than franchisor and franchisee.
Under no circumstances is Buildingstars liable for any act, omission, debt, or other obligation of the franchisee. This reinforces the independent nature of the franchise relationship and protects Buildingstars from being held responsible for the franchisee's financial obligations.