What happens to provisions of the Buildingstars Franchise Agreement that conflict with applicable law?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Agreement which conflict with the applicable law shall (only to the extent not in accordance with applicable law) be ineffective, and in their stead, BUILDINGSTARS shall comply with applicable law respecting each of said matters.
BUILDINGSTARS shall not, however, be precluded from contesting the validity, enforceability, or applicability of such laws or regulations in any action relating to this Agreement or to its rescission or termination.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if any part of the Franchise Agreement conflicts with a valid and applicable law, then that specific part of the agreement will be considered ineffective, but only to the extent that it violates the law. In such cases, Buildingstars will adhere to the applicable law instead of the conflicting provision in the agreement.
However, this does not prevent Buildingstars from challenging the validity, enforceability, or applicability of those laws or regulations in any legal action related to the Franchise Agreement, including disputes over its rescission or termination. This means that while Buildingstars will initially comply with applicable laws, they retain the right to argue against those laws in court.
This clause ensures that the Franchise Agreement remains compliant with relevant legal standards while also protecting Buildingstars's ability to contest laws they believe are incorrectly applied or are invalid. For a prospective franchisee, this means that the agreement is designed to respect legal requirements, but it also acknowledges that legal interpretations can be disputed in court.