Can Buildingstars officers act in an individual capacity when dealing with the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
In all of their dealings with FRANCHISEE, the officers, directors, employees and agents of BUILDINGSTARS act only in their representative capacity for BUILDINGSTARS, and not in any individual capacity.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, officers, directors, employees, and agents act only in their representative capacity for Buildingstars when dealing with a franchisee. This means they are acting on behalf of the company and not as individuals.
This provision clarifies that franchisees cannot hold individual officers, directors, employees, or agents of Buildingstars personally liable for actions or decisions made in their official capacity. The franchisee's recourse is with Buildingstars as a corporate entity, not with any individual associated with the company.
This is a common practice in franchising, designed to protect the personal assets of company personnel and ensure that the franchise agreement is between the franchisee and the franchisor company. It is important for a prospective franchisee to understand this distinction, as it affects who they can pursue legal action against if a dispute arises.