Does Buildingstars require the Principal Owner to directly participate in the operation of the business?
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, direct participation in the business's operation and management is required. If the franchisee is a corporation, partnership, or limited liability company, the Principal Owner must use their best efforts in the business's operation.
The FDD defines "Principal Owners" as the individual franchisee, shareholders of a corporation, partners of a partnership, or members of a limited liability company. The franchisee or the Principal Owner must directly participate in the business's operation and supervise it at all times.
Principal Owners are also required to complete the Initial Training Program satisfactorily and maintain the confidentiality of Buildingstars's confidential information and trade secrets. Furthermore, franchisees must ensure their employees sign a non-disclosure agreement. Shareholders or members of corporate or limited liability company franchises must sign a standard form Guarantee, assuming all obligations of the Franchisee under the Franchise Agreement.