If the Buildingstars franchisee is a partnership, are the spouses of the partners also obligated under the agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
their spouses owning any interest in FRANCHISEE if it is a partnership; and (c) all of the individuals and their spouses owning any interest in FRANCHISEE if it is a sole proprietorship. For purposes of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if the franchisee is a partnership, the spouses of the partners owning any interest in the franchisee are also obligated under the agreement. This also applies to sole proprietorships, where all individuals and their spouses owning any interest in the franchisee are obligated.
For the purpose of determining ownership in a Buildingstars franchise, the interests owned by a husband and wife are considered as one interest. This means that both husband and wife are obligated under the franchise agreement, regardless of whether the interest is owned by just one spouse or both spouses.
This clause ensures that Buildingstars can hold both spouses accountable for the franchise's obligations, even if only one spouse is actively involved in the business or if the ownership is legally structured in a way that appears to limit one spouse's liability. This is a common practice in franchising to protect the franchisor's interests and ensure compliance with the franchise agreement.