What is the maximum aggregate liability of Buildingstars for claims relating to the franchise agreement?

According to Buildingstars's 2025 Franchise Disclosure Document, the maximum aggregate liability for Buildingstars and its related parties regarding claims related to the franchise agreement 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 most they can recover in damages from Buildingstars and its related parties is the amount they've paid to Buildingstars in the year leading up to the claim.

This limitation of liability has significant implications for prospective Buildingstars franchisees. It caps the potential financial recovery a franchisee can obtain from Buildingstars, regardless of the actual damages suffered. For instance, even if Buildingstars's actions cause a franchisee to lose a substantial amount of money, the franchisee's recovery is limited to the fees paid in the previous year. This could be substantially less than the actual losses incurred.

Such limitations of liability are relatively common in franchise agreements. Franchisees should carefully consider this limitation and its potential impact on their business. It is important to understand that this limitation applies collectively to Buildingstars and all of its officers, owners, directors, members, managers, employees, affiliates, parents, and subsidiaries. This means that the franchisee cannot circumvent the limitation by suing multiple related parties.

Prospective franchisees should consult with an attorney to fully understand the implications of this clause and to assess the potential risks and benefits of investing in a Buildingstars franchise, given this limitation of liability. Understanding this limitation is crucial for making an informed decision about whether to invest in a Buildingstars franchise.