What is the maximum aggregate liability of Buildingstars and its officers, owners, directors, members, managers, employees, affiliates, parents or subsidiaries related to claims arising from the Buildingstars franchise agreement?

According to Buildingstars's 2025 Franchise Disclosure Document, the maximum aggregate liability of Buildingstars, including its officers, owners, directors, members, managers, employees, affiliates, parents, or subsidiaries, for 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 limitation on liability has significant implications for prospective Buildingstars franchisees. It means that in the event of a dispute or claim against Buildingstars, the franchisee's potential recovery is capped by the fees they have paid to Buildingstars in the year preceding the claim. This could be substantially less than the actual damages incurred by the franchisee, especially if the dispute arises early in the franchise term or if the franchisee has not yet generated significant revenue.

This type of limitation of liability clause is relatively common in franchise agreements. It is important for prospective franchisees to carefully consider this limitation and its potential impact on their business. Franchisees should consult with an attorney to fully understand the implications of this clause and to assess whether additional insurance or other risk mitigation strategies are necessary.