factual

Does the Buildingstars Franchise Agreement state that officers act in an individual capacity?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

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 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement addresses the capacity in which Buildingstars' officers, directors, employees, and agents act when dealing with franchisees. Specifically, it states that these individuals act only in their representative capacity for Buildingstars, and not in any individual capacity. This provision is intended to clarify that the franchisee's interactions are with the company itself, and not with individual representatives of the company.

This clause protects the officers, directors, employees, and agents from being held personally liable for actions taken on behalf of Buildingstars. It ensures that any legal or contractual issues are directed towards the company rather than the individuals representing it. This is a common practice in franchising to shield individual employees from personal liability related to franchise operations.

For a prospective Buildingstars franchisee, this means that any disputes or legal matters should be pursued against the Buildingstars entity, and not against individual officers or employees. This provision is designed to streamline legal processes and ensure that the company, as a whole, is accountable for its actions and obligations under the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.