What objection do Buildingstars franchisees and guarantors waive?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. 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.
- C. 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, STOCKHOLDERS, MEMBERS, MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS) BY WAY OF CLASS ACTION, OR BY WAY OF A MULTI-PLAINTIFF, CONSOLIDATED OR COLLECTIVE ACTION.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Buildingstars Franchise Disclosure Document, franchisees and guarantors waive the right to a trial by jury and the right to participate in a class action against Buildingstars. Specifically, the document states that the parties waive trial by jury in any action, proceeding, or counterclaim related to the franchise agreement or the relationship between the parties. Additionally, any disagreement between the franchisee and Buildingstars must be handled individually and not as part of a class action or multi-plaintiff consolidated action.
This means that a Buildingstars franchisee cannot join other franchisees to sue Buildingstars as a group. Each franchisee must pursue any legal claims individually, which can be more expensive and time-consuming than participating in a class action. This waiver also means that any disputes will be decided by a judge rather than a jury, potentially impacting the outcome of legal proceedings.
These waivers are common in franchise agreements, as franchisors often seek to avoid the expense and potential negative publicity associated with class action lawsuits. Prospective Buildingstars franchisees should carefully consider the implications of these waivers and consult with an attorney before signing the franchise agreement to fully understand their legal rights and options.