Does the Buildingstars Franchise Agreement disclaim representations made in the franchise disclosure document?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE acknowledges that, except as otherwise specifically stated herein, BUILDINGSTARS has the absolute right to exercise its own judgment on various matters about this Agreement and the Manual, and has the absolute right to approve, disapprove, give its consent and refuse to consent to FRANCHISEE'S requests in its sole and absolute discretion.
FRANCHISEE agrees that BUILDINGSTARS' action, refusal to act, approval, disapproval, consent, or refusal of consent is not, and shall not be deemed, a representation, warranty, certification or guarantee by BUILDINGSTARS about that which is acted upon or refused consent, or about any appropriateness, legality, profitability, or success related thereto.
No BUILDINGSTARS action, refusal to act, approval, disapproval, consent or refusal to consent is, or shall be deemed, a guarantee, warranty, or representation that the Business complies with, or meets any local, municipal, state, federal, or other laws or regulations relating to the offer of services or otherwise.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement includes a "No Warranty" clause. This clause stipulates that Buildingstars has the right to exercise its judgment on matters related to the agreement and the manual, and to approve or disapprove franchisee requests at its discretion.
Specifically, the agreement states that any action, inaction, approval, disapproval, consent, or refusal of consent by Buildingstars should not be considered a representation, warranty, certification, or guarantee regarding the matter acted upon or refused, or about the appropriateness, legality, profitability, or success related to it. Furthermore, no action by Buildingstars constitutes a guarantee, warranty, or representation that the business complies with any laws or regulations.
In practical terms, this means a Buildingstars franchisee cannot claim that Buildingstars made any guarantees or warranties about the business's potential profitability or legal compliance, unless explicitly stated otherwise in the franchise agreement. This clause protects Buildingstars from liability for a franchisee's business outcomes, as long as Buildingstars acts within its contractual rights. Franchisees should therefore carefully review all aspects of the franchise agreement and conduct their own due diligence regarding the potential profitability and legal requirements of operating a Buildingstars franchise.