factual

What should a prospective Buildingstars franchisee do if the FDD contains a false or misleading statement?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

If we do not deliver this franchise disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified in Exhibit I.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, a prospective franchisee who believes the FDD contains a false or misleading statement, or a material omission, should report it to the Federal Trade Commission (FTC) in Washington, D.C. The FDD also states that a violation of federal and state law may have occurred. In addition to the FTC, the potential franchisee should report the issue to the appropriate state agency identified in Exhibit I of the FDD.

Exhibit I of the Buildingstars FDD lists state agencies and agents for service of process. For example, if the potential franchisee is in Illinois, they should contact the Franchise Division Office of Attorney General in Springfield. For Indiana, the contact is the Indiana Secretary of State Securities Division in Indianapolis. For New York, it's the New York State Department of Law Investor Protection Bureau in New York City. These agencies can investigate potential violations of franchise law.

It is important for prospective Buildingstars franchisees to carefully review the FDD and all related agreements. The FDD summarizes key provisions in plain language, but the document and agreements should still be read thoroughly. Franchisees should also keep a copy of the FDD for their records. By reporting any discrepancies or concerns to the appropriate authorities, franchisees can help ensure compliance with franchise laws and protect their investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.