Where must lawsuits between Buildingstars and the franchisee be filed?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.
FRANCHISEE will be barred from bringing any and all claims arising out of or relating to this Agreement or BUILDINGSTARS' relationship with FRANCHISEE, unless a judicial or arbitration proceeding is commenced within one (1) year from the date on which FRANCHISEE knew or should have known of the facts giving rise to that claim.
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.
ANY DISAGREEMENT BETWEEN FRANCHISEE AND BUILDINGSTARS (AND ITS AFFILIATES AND OWNERS) WILL BE CONSIDERED UNIQUE AS TO ITS FACTS AND MUST NOT BE BROUGHT AS A CLASS ACTION AND FRANCHISEE WAIVES ANY RIGHT TO PROCEED AGAINST BUILDINGSTARS (AND ITS AFFILIATES,
In the event that the FRANCHISEE or its guarantors have not complied with the provisions in this Section on Dispute Resolutions, FRANCHISEE shall reimburse BUILDINGSTARS for all of its expenses incurred in curing the FRANCHISEE's breach (including, without limitation, BUILDINGSTARS's attorneys' fees and costs related to dismissing and responding to any improperly filed claim) and pay the BUILDINGSTARS a Dispute Resolution Fee of $50,000 ("Dispute Resolution Fee").
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
The 2025 Buildingstars Franchise Disclosure Document states that the franchise agreement contains a binding arbitration provision that may be enforced by the parties. This means that instead of filing a lawsuit in court, disputes will be resolved through arbitration, a process where a neutral third party hears the case and makes a decision.
According to the FDD, if a franchisee does not comply with the dispute resolution provisions, they may have to reimburse Buildingstars for all expenses incurred in curing the franchisee's breach, including attorneys' fees and costs related to dismissing any improperly filed claim. Additionally, the franchisee may have to pay Buildingstars a Dispute Resolution Fee of $50,000.
The FDD also indicates that any claims arising out of or relating to the franchise agreement or Buildingstars' relationship with the franchisee must be commenced within one year from the date the franchisee knew or should have known of the facts giving rise to the claim. Franchisees also waive the right to a jury trial and class action lawsuits. Prospective franchisees should carefully consider the implications of these provisions, as they affect their legal rights and options in case of a dispute with Buildingstars.