How is Buildingstars' maximum aggregate liability calculated in relation to what the franchisee paid?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. BUILDINGSTARS MAXIMUM AGGREGATE LIABILITY AND THE MAXIMUM AGGREGATE LIABILITY OF ANY OF BUILDINGSTARS'S OFFICERS, OWNERS, DIRECTORS, MEMBERS, MANAGERS, EMPLOYEES, AFFILIATES, PARENTS OR SUBSIDIARIES RELATED TO ANY AND ALL CLAIMS RELATING TO OR ARISING FROM THIS AGREEMENT OR THE FRANCHISE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT FRANCHISEE PAID TO BUILDINGSTARS WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY BUILDINGSTARS.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the maximum aggregate liability of Buildingstars, including its officers, owners, directors, members, managers, employees, affiliates, parents, or subsidiaries, for any claims related to the franchise agreement or relationship, is limited to the amount the franchisee paid to Buildingstars within the 12 months immediately before Buildingstars receives written notice of the claim.
This means that if a franchisee has a dispute with Buildingstars, the maximum amount they can recover from Buildingstars is capped at the total payments made to Buildingstars in the year leading up to the claim. This limitation applies collectively to all potential claims against Buildingstars and its related parties.
This clause is significant for prospective franchisees as it defines the financial risk Buildingstars is willing to assume. It is important to understand that this limitation could substantially restrict the amount a franchisee can recover, even if actual damages are much higher. Franchisees should consider this limitation carefully and consult with a legal professional to understand its implications fully.