Is Buildingstars liable for the debts or obligations of a Buildingstars franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS and FRANCHISEE are independent contractors, and no partnership, fiduciary, joint venture, or employment relationship exists between them, in any respect. FRANCHISEE shall conspicuously identify itself at the premises of the Business and in all dealings with the public as the owner of the business. BUILDINGSTARS shall not be involved in the day-to-day management or control of the Business. Neither BUILDINGSTARS nor FRANCHISEE shall make any agreements or representations in the name of or on behalf of the other that their relationship is other than franchisor and franchisee. Under no circumstances shall BUILDINGSTARS be liable for any act, omission, debt, or other obligation of FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is not liable for the debts or obligations of its franchisees. The franchise agreement explicitly states that Buildingstars and the franchisee are independent contractors, establishing that no partnership, fiduciary, joint venture, or employment relationship exists between them.
Buildingstars is not involved in the franchisee's day-to-day business management or control. The agreement specifies that neither Buildingstars nor the franchisee can make agreements or representations on behalf of each other that suggest their relationship is anything other than franchisor and franchisee.
Under no circumstances is Buildingstars liable for any act, omission, debt, or other obligation of the franchisee. This provision aims to protect Buildingstars from financial or legal liabilities arising from the franchisee's business operations.