Where can I find the definition of terms used in the Buildingstars Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
I. DEFINITIONS.
For purposes of this Agreement, the following terms shall have the meaning as set forth below and the definitions constitute an integral part of this Agreement:
- A. "Affiliate" means any and all entities that are or may control, be controlled by, or under common ownership with BUILDINGSTARS including but not limited to Buildingstars, Inc. (f/k/a Advantage Building Services, Inc.), Buildingstars Operations, Inc. (f/k/a Buildingstars STL Operations, Inc.), Buildingstars International, Inc., Green Sky Franchise Group, Inc., Facility Brands, Inc. and Green Sky Southwest, Inc.
- B. "Business" means the cleaning business that FRANCHISEE will operate under this Agreement using the System and Marks.
- C. Customer" means any existing customers or prospective customers (of BUILDINGSTARS, its Affiliates, FRANCHISEE, or any other franchisee) with whom FRANCHISEE or its employees or agents have had direct or indirect contact or about whom FRANCHISEE or its employees or agents have learned information by virtue of: (1) communications with BUILDINGSTARS, its Affiliates or other BUILDINGSTARS franchisees; (2) the operation of the Business; or (3) the transfer or termination of this Agreement, and in addition, "Customer" shall include any affiliate, successor in interest, subsidiary, sibling company, or parent company of any such customer or prospective customer.
- D. "Gross Sales" means the total money or property earned by FRANCHISEE or derived from or in connection with the operation of the Business, including all fees and other charges for every type of service performed and goods and services sold. Gross Sales will be calculated at the time the services or products from which they were derived are delivered or rendered. The term does not include applicable sales, use or service taxes and any refunds and allowances actually given to Customers.
- E. "FRANCHISEE" shall be deemed to include: (a) all persons and their spouses owning any interest in FRANCHISEE if it is a corporation or a limited liability company; (b) all partners and 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, definitions of terms used in the Franchise Agreement are found within the agreement itself. Specifically, Item 22, which contains the franchise contracts, includes a section titled "DEFINITIONS." This section explains the meaning of certain terms used throughout the agreement.
For a Buildingstars franchisee, understanding these definitions is crucial, as they clarify the rights and obligations outlined in the agreement. For instance, the definition of "Customer" specifies who is considered a customer of Buildingstars, its affiliates, the franchisee, or other franchisees, which can impact how the franchisee interacts with potential clients and avoids conflicts of interest. Similarly, the definition of "Gross Sales" clarifies what revenue is subject to franchise fees and other calculations.
The Buildingstars FDD defines terms such as "Affiliate," "Business," "Customer," "Gross Sales," and "FRANCHISEE." These definitions are an integral part of the Franchise Agreement, meaning they are legally binding and used to interpret the agreement's provisions. Franchisees should carefully review these definitions to fully understand their scope and implications for their business operations.
Prospective Buildingstars franchisees should pay close attention to these definitions during their due diligence. Understanding how Buildingstars defines key terms will help franchisees avoid misunderstandings and ensure compliance with the Franchise Agreement. It is advisable to seek legal counsel to review the Franchise Agreement and clarify any ambiguities or concerns regarding these definitions.