Are Buildingstars' officers, directors, employees, and agents acting in an individual capacity when dealing with franchisees?
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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the officers, directors, employees, and agents of Buildingstars act only in their representative capacity for Buildingstars, and not in any individual capacity, when dealing with franchisees. This means that these individuals are acting on behalf of the company and not personally.
This provision protects the individuals working for Buildingstars from personal liability related to their actions taken on behalf of the company when interacting with franchisees. Franchisees cannot pursue legal action against them individually for actions related to the franchise agreement; any claims must be against Buildingstars itself.
This is a common practice in franchising, as it shields the franchisor's employees and representatives from personal lawsuits and ensures that the company is the responsible party. However, franchisees should be aware that this clause limits their legal recourse to the company itself, even if a specific individual's actions cause harm. Franchisees should consult with a legal professional to fully understand the implications of this provision.