factual

What should a franchisee do if the Buildingstars Franchise Disclosure Document contains a false or misleading statement?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

If we do not deliver this franchise disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified in Exhibit I.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, if the document contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred. In such a case, the document advises that this should be reported to the Federal Trade Commission (FTC) in Washington, D.C. 20580. Additionally, the matter should be reported to the appropriate state agency, which is identified in Exhibit I of the FDD.

This instruction is a standard inclusion in franchise disclosure documents, intended to protect prospective franchisees by ensuring the accuracy and completeness of the information provided. The FTC and state agencies are the primary regulatory bodies responsible for overseeing franchise offerings and enforcing franchise laws. Reporting any discrepancies or omissions is crucial for maintaining transparency and accountability in the franchising process.

Exhibit I of the Buildingstars FDD lists the relevant state agencies and their contact information. For example, for Illinois, the contact is the Franchise Division Office of Attorney General in Springfield, with a phone number of (217) 782-4465. For Indiana, it is the Indiana Secretary of State Securities Division in Indianapolis, with a phone number of (317) 232-6681. For New York, it is the New York State Department of Law Investor Protection Bureau in New York, NY, with a phone number of (212) 416-8000. Prospective franchisees should consult Exhibit I to identify the specific agency for their state.

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.