In the Buildingstars FDD receipt, what sections are the undersigned individuals personally bound by and liable for?

According to Buildingstars' 2025 Franchise Disclosure Document, as a condition of granting franchise rights, Buildingstars may require certain individuals to execute a limited agreement on the signature page. The effectiveness of the Franchise Agreement is expressly conditional upon the execution of this limited agreement by all individuals required by Buildingstars. This means that individuals signing in a representative capacity may be personally bound by specific sections of the agreement, as determined and required by Buildingstars.

This requirement allows Buildingstars to ensure that key individuals associated with the franchisee are directly committed to upholding certain obligations. This could include, for example, principals or managers who will be actively involved in the business operations. By having these individuals sign a limited agreement, Buildingstars aims to reinforce accountability and compliance with critical aspects of the franchise agreement.

For a prospective Buildingstars franchisee, this implies that they should be prepared to have certain individuals within their organization also sign a limited agreement, if required by Buildingstars. It is important to carefully review the specific terms of this limited agreement to understand the obligations and liabilities that these individuals will be undertaking. Franchisees should seek legal counsel to fully understand the implications of this requirement and ensure that all parties involved are aware of their responsibilities.

This practice is not uncommon in franchising, particularly when dealing with corporate franchisees or partnerships where individual accountability may be less clear. By requiring individual signatures on specific agreements, franchisors like Buildingstars can mitigate risks and ensure that there are responsible parties directly bound to the terms of the franchise agreement.