Does Buildingstars require the franchisee or Principal Owner to supervise the business at all times?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if you are a franchisee, you must participate directly in the operation and management of your Buildingstars business. If the franchisee is a corporation, partnership, or limited liability company, the Principal Owner is required to use their best efforts in the operation of the business.
The FDD defines "Principal Owners" as the individual franchisee, shareholders of a corporation, partners in a partnership, or members of a limited liability company. Buildingstars requires that either the franchisee or the Principal Owner directly participate in the operation of the business and supervise the business at all times.
Furthermore, Principal Owners must satisfactorily complete Buildingstars's Initial Training Program and agree to maintain the confidentiality of Buildingstars's confidential information and trade secrets. Franchisees must also ensure that all employees execute a non-disclosure agreement acceptable to Buildingstars, relating to trade secrets and non-competition, and possibly restrictive covenant and/or non-competition agreements. If the franchisee is a corporation or limited liability company, all shareholders or members and their spouses must sign Buildingstars's standard form Guarantee, which is attached to the Franchise Agreement, assuming and agreeing to discharge all obligations of the "Franchisee" under the Franchise Agreement.