Does the Buildingstars Franchise Agreement include a section outlining the non-liability of Buildingstars' affiliates?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS is the only entity obligated to FRANCHISEE hereunder. FRANCHISEE may not look to any of BUILDINGSTARS' Affiliates or related companies, other business entities or individuals for performance of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Franchise Agreement includes a section addressing the non-liability of Buildingstars' affiliates. Specifically, it states that only Buildingstars is obligated to the franchisee under the agreement. Franchisees cannot seek recourse from Buildingstars' affiliates, related companies, or individuals for the performance of the agreement.
This provision clarifies that while Buildingstars may have affiliated entities, the franchisee's contractual relationship is solely with Buildingstars. This means that if a franchisee has issues related to the franchise agreement, their legal recourse is limited to Buildingstars and does not extend to its affiliates.
For a prospective franchisee, this is an important consideration. It limits the scope of potential legal action and emphasizes the importance of thoroughly evaluating Buildingstars's financial stability and ability to meet its obligations. The definition of "Affiliate" includes entities that control, are controlled by, or are under common ownership with Buildingstars, including specific entities like Buildingstars, Inc., Buildingstars Operations, Inc., Buildingstars International, Inc., Green Sky Franchise Group, Inc., Facility Brands, Inc. and Green Sky Southwest, Inc.