What is the purpose of the State Specific Addenda (Exhibit E) in the Buildingstars Franchise Disclosure Document?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Date of Issuance: April 15, 2025
See Exhibit I for our registered agents authorized to receive service of process.
I have received a disclosure document dated April 15, 2025, that included the following Exhibits:
A. Technician Franchise Agreement F. List of Franchisees
B. On-Site Manager Franchise Agreement G. Audited Financial Statements
E. State Specific Addenda J. Receipt
C. Corporate Franchise Agreement H. Unaudited Financial Statements-none
D. Table of Contents of Manual I. List of State Agencies/Agents for Service of Process
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Exhibit E is the State Specific Addenda. The document lists the exhibits included in the franchise disclosure document, and Exhibit E is identified as the State Specific Addenda.
State-specific addenda are crucial because franchise laws vary significantly from state to state. These addenda modify the standard franchise agreement to comply with local regulations. They may cover aspects such as dispute resolution, termination rights, renewal conditions, and other legal requirements that are specific to a particular state. Without these addenda, the franchise agreement might not be enforceable in certain states or could expose Buildingstars and its franchisees to legal liabilities.
Prospective Buildingstars franchisees should carefully review the State Specific Addenda (Exhibit E) applicable to their state to understand any modifications to the standard franchise agreement. This ensures they are fully aware of their rights and obligations under local laws. Consulting with a franchise attorney is advisable to navigate these state-specific nuances and ensure compliance.