Can a Buildingstars franchisee participate in a class action lawsuit against Buildingstars?

According to Buildingstars's 2025 Franchise Disclosure Document, franchisees are prohibited from participating in a class action lawsuit against the company. The FDD states that any disagreement between a franchisee and Buildingstars will be considered unique and must not be brought as a class action. Franchisees waive any right to proceed against Buildingstars, 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.

This waiver means that each franchisee must pursue any legal claims against Buildingstars individually. This can be a significant disadvantage, as individual lawsuits are often more expensive and time-consuming than class actions. Class actions allow plaintiffs to pool resources and share the costs of litigation. They can also be a more effective way to address systemic issues that affect a large number of franchisees.

It is important for prospective Buildingstars franchisees to understand this limitation before signing the franchise agreement. They should consider the potential implications of waiving their right to participate in a class action lawsuit. If a franchisee believes that Buildingstars has engaged in misconduct that affects a large number of franchisees, they will not be able to join with other franchisees to pursue a class action. Instead, they will have to pursue their claims individually, which can be a daunting and expensive undertaking.

This type of clause is increasingly common in franchise agreements. Prospective franchisees should carefully review the legal action limitations and consider seeking legal advice to fully understand their rights and obligations.