When Buildingstars officers, directors, employees, and agents deal with the franchisee, in what capacity do they act?
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, 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 the franchisee. This means that any actions taken or decisions made by these individuals are on behalf of the company, Buildingstars, and not in their own personal interest or as individuals separate from the company.
For a prospective franchisee, this is important because it clarifies that the franchisee's relationship is with the Buildingstars entity itself, rather than with individual representatives of the company. Any agreements, obligations, or liabilities are between the franchisee and Buildingstars, not with the individual officers, directors, employees, or agents. This distinction can have legal and financial implications, particularly in the event of disputes or legal actions.
This clause helps to protect both the franchisee and Buildingstars by ensuring that all interactions are conducted within the scope of the franchise agreement and under the umbrella of the company's policies and procedures. It also limits the potential for individual representatives to be held personally liable for actions taken on behalf of Buildingstars, providing a clear framework for accountability and responsibility within the franchise system.