Does Buildingstars retain the right to franchise the Buildingstars system to third parties anywhere?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Rights Reserved by BUILDINGSTARS and Affiliates. BUILDINGSTARS and its Affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses using the System and/or Marks anywhere, including within and outside of the Area. BUILDINGSTARS, its Affiliates and other franchisees and licensees are also permitted to operate or license others to operate businesses similar to or the same as the Business under different Marks or the System or different systems anywhere, including within and outside of the Area. BUILDINGSTARS and its Affiliates are also authorized to sell some or all of the products and services authorized for sale by the Business in any channel of distribution, including but not limited to the wholesale sales of products and/or to provide management and/or consulting services using the System and/or the Marks.
Source: Item 12 — TERRITORY (FDD pages 26–27)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars retains the right to franchise its system to third parties anywhere. This means that Buildingstars is not restricted from awarding franchises to other individuals or entities, regardless of their location, including within an existing franchisee's exclusive territory.
This right extends to Buildingstars's affiliates, allowing them to also franchise or license the Buildingstars system. Furthermore, Buildingstars and its affiliates can operate or license businesses that are similar to the franchised business, even under different trademarks or systems, without geographic limitations. This could potentially lead to increased competition for franchisees, even within their designated area.
Buildingstars also retains the right to sell products and services through any distribution channel. For a prospective franchisee, this means that Buildingstars could engage in activities that might compete with their business, such as wholesale sales or providing management and consulting services, regardless of the franchisee's location or market. This broad reservation of rights is a common practice among franchisors to maintain flexibility and control over their brand and business model.