Does the Buildingstars Franchise Agreement define the representative capacity of Buildingstars' agents?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Representative Capacity.
In all of their dealings with FRANCHISEE, the officers, directors, employees and agents of BUILDINGSTARS act only in their representative capacity for BUILDINGSTARS, and not in any individual capacity.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Franchise Agreement does address the representative capacity of Buildingstars' officers, directors, employees, and agents. It states that when dealing with franchisees, these individuals act solely in their capacity as representatives of Buildingstars, and not in any personal or individual capacity.
This provision clarifies that Buildingstars, as a corporate entity, is the responsible party in the franchise relationship. Franchisees cannot hold the individual officers, directors, employees, or agents of Buildingstars personally liable for actions or decisions made in their official roles. This is a common practice in franchising, designed to protect the personal assets of individuals working for the franchisor.
For a prospective Buildingstars franchisee, this means that any legal recourse or claims related to the franchise agreement must be directed towards the Buildingstars entity itself, and not against individual representatives of the company. This clause helps to define the legal boundaries and responsibilities within the Buildingstars franchise system.