In the Buildingstars franchise agreement, what term is used to refer to the franchisee?
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 Buildingstars's 2025 Franchise Disclosure Document, the term used to refer to the franchisee in the franchise agreement is "FRANCHISEE". The document defines this term broadly to include various ownership structures. Specifically, "FRANCHISEE" encompasses all individuals and their spouses who own any interest in the franchise, whether it's structured as a corporation, limited liability company, partnership, or sole proprietorship.
This definition is important because it clarifies who is bound by the terms of the franchise agreement. It ensures that all individuals with a financial stake in the Buildingstars franchise are responsible for upholding the agreement's obligations. This is a common practice in franchising, as franchisors want to ensure that all owners are committed to the brand and system standards.
For a prospective Buildingstars franchisee, this means that if you are married and plan to own the franchise jointly with your spouse, both of you will be considered "FRANCHISEE" and will be legally responsible for adhering to the franchise agreement. Similarly, if the franchise is owned by a corporation or partnership, all individuals with ownership interests, along with their spouses, fall under this definition. This comprehensive definition aims to prevent any ambiguity regarding responsibility and liability within the franchise operation.