Does the franchisee waive the right to a jury trial in actions relating to the Buildingstars agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. THE PARTIES WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM RELATING TO OR ARISING OUT OF THIS AGREEMENT OR THE RELATIONSHIP OF THE PARTIES.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees waive their right to a jury trial. Specifically, Item 22, related to contracts, states that both Buildingstars and the franchisee agree to waive a jury trial for any legal actions pertaining to the franchise agreement or the relationship between the parties. This means that any disputes arising from the franchise agreement will be resolved by a judge rather than a jury.
This waiver has significant implications for prospective Buildingstars franchisees. Jury trials can be more unpredictable and potentially lead to larger damage awards. By agreeing to a bench trial (trial by judge), franchisees may face a more predictable legal process, but they also lose the opportunity to present their case to a jury of their peers. This could be seen as a disadvantage if a franchisee believes a jury would be more sympathetic to their situation than a judge.
It is relatively common in franchise agreements to include clauses that address dispute resolution, including waivers of jury trials and requirements for arbitration. These clauses are intended to streamline the legal process and reduce costs for both parties. However, franchisees should carefully consider the implications of these waivers, as they can affect their legal rights and options in the event of a dispute with Buildingstars. Prospective franchisees should seek legal counsel to fully understand the ramifications of this and other clauses within the franchise agreement before signing.