Can a Buildingstars franchisee bring a class action against Buildingstars, its affiliates, or owners regarding a disagreement?

According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee is restricted from initiating a class action against Buildingstars, its affiliates, and owners. The franchise agreement stipulates that any disagreement must be considered unique to its facts and cannot be pursued as a class action. The franchisee also waives any right to proceed against Buildingstars and its related parties through class action, multi-plaintiff, consolidated, or collective action. This waiver means a franchisee must pursue any legal claims individually.

This clause has significant implications for prospective Buildingstars franchisees. It prevents them from joining forces with other franchisees to collectively sue Buildingstars, even if they have similar grievances. Class action lawsuits can be a powerful tool for franchisees, allowing them to share the costs of litigation and increase their bargaining power. By waiving this right, franchisees may face a disadvantage when resolving disputes with Buildingstars.

It is important for potential Buildingstars franchisees to understand the limitations imposed by this clause. They should carefully consider the potential risks and benefits before signing the franchise agreement. Franchisees may want to seek legal advice to fully understand the implications of waiving their right to participate in a class action lawsuit. This type of clause is increasingly common in franchise agreements, but its impact can be substantial.