Must Buildingstars Principal Owners satisfactorily complete the Initial Training Program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 15: OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS]
ITEM 15. OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS
We require you to participate directly in the operation and management of your Business.
If you are a corporation, partnership, or limited liability company, your Principal Owner is required to use his or her best efforts in the operation of the Business. "Principal Owners" means you personally if you are an individual or more than one individual, your shareholder(s) if you are a corporation, your partners if you are a partnership, or your members if you are a limited liability company. You or your Principal Owner must directly participate in the operation of your Business and must supervise your Business at all times. Principal Owners must satisfactorily complete our Initial Training Program and must agree to maintain the confidentiality of our confidential information and trade secrets. You must require all of your employees to execute a non-disclosure agreement in the form acceptable to BUILDINGSTARS relating to trade secrets and non-competition and possibly restrictive covenant and/or non-competition agreements. If you are a corporation or limited liability company, all shareholders or members and their spouses of a corporate franchise or limited liability company franchise will sign our standard form Guarantee, which is attached to the Franchise Agreement. This Guarantee provides that each individual who signs is assuming and agreeing to discharge all obligations of the "Franchisee" under the Franchise Agreement.
Source: Item 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 28–29)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Principal Owners are required to satisfactorily complete the Initial Training Program. Specifically, Item 15 states that if the franchisee is a corporation, partnership, or limited liability company, the Principal Owner must use their best efforts in the operation of the business. It also explicitly states that Principal Owners must satisfactorily complete the Initial Training Program.
This requirement is further reinforced in Item 22, which indicates that Buildingstars has the right to terminate the Franchise Agreement if the Principal Owner does not satisfactorily complete the training program. However, the FDD also notes that satisfactory completion of the training program does not guarantee the success of the business.
Furthermore, Item 22 outlines that the franchisee must begin operations within 45 days after the Principal Owner successfully completes the Initial Training Program. The franchisee is considered to have begun operations when the Principal Owners have successfully completed the Initial Training Program, have all necessary licenses and permits, have provided proof of insurance coverage, have all necessary materials and supplies, and are in full compliance with the Franchise Agreement. This underscores the importance of the initial training program for the franchisee to commence business operations.