Can a Buildingstars franchisee bring a class action lawsuit against Buildingstars?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. ANY DISAGREEMENT BETWEEN FRANCHISEE AND BUILDINGSTARS (AND ITS AFFILIATES AND OWNERS) WILL BE CONSIDERED UNIQUE AS TO ITS FACTS AND MUST NOT BE BROUGHT AS A CLASS ACTION AND FRANCHISEE WAIVES ANY RIGHT TO PROCEED AGAINST BUILDINGSTARS (AND ITS AFFILIATES, STOCKHOLDERS, MEMBERS, MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS) BY WAY OF CLASS ACTION, OR BY WAY OF A MULTI-PLAINTIFF, CONSOLIDATED OR COLLECTIVE ACTION.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee is prohibited from bringing a class action lawsuit against Buildingstars. The FDD explicitly states that any disagreement between a franchisee and Buildingstars will be considered unique and must not be brought as a class action.
This means that each franchisee's legal claims against Buildingstars must be pursued individually, based on the specific facts of their situation. Franchisees waive their right to participate in or initiate a class action, multi-plaintiff, consolidated, or collective action against Buildingstars and its affiliates, stockholders, members, managers, officers, directors, employees, agents, successors, and assigns.
This waiver has significant implications for a prospective Buildingstars franchisee. It limits their legal options and potentially increases the cost and complexity of resolving disputes with the franchisor. Class action lawsuits can be a more efficient and cost-effective way for multiple franchisees with similar grievances to seek redress. By waiving this right, franchisees bear the full burden of pursuing their claims individually, which may deter them from taking legal action, even if they have a valid claim. This type of clause is relatively common in franchise agreements.