In which state was the Buildingstars Franchise Agreement accepted?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- H.
Governing Law and Jurisdiction.
FRANCHISEE acknowledges that this Agreement was accepted in the State of Missouri.
Except to the extent that this Agreement or any particular dispute is governed by the U.S.
Trademark Act of 1946 (Lanham Act, 115 U.S.C. 1051), this Agreement will be governed, to the extent permissible, by the laws of the State of Missouri (without reference to its conflict of laws principles).
If, however, any provision of this Agreement would not be enforceable under the laws of Missouri, and if the Business is located outside of Missouri and the provision would be enforceable under the laws of the state in which the Business is located, then the provision in question (and only that provision) will be interpreted and construed under the laws of the state where the Business is located.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the Franchise Agreement was accepted in the State of Missouri. The document specifies that, unless superseded by the U.S. Trademark Act, the laws of Missouri will govern the agreement, without regard to its conflict of laws principles.
However, there's a condition: if any provision of the agreement is unenforceable under Missouri law, but is enforceable under the laws of the state where the Buildingstars business is located, then only that specific provision will be interpreted and construed under the laws of the business's state. This ensures that the agreement remains as enforceable as possible, adapting to local laws where necessary.
This clause is important for prospective Buildingstars franchisees because it clarifies which state's laws will primarily govern the franchise agreement. While Missouri law takes precedence, the agreement acknowledges that local laws in the franchisee's state may apply to specific provisions, potentially offering some protection or requiring compliance with local regulations. Franchisees should be aware of this and understand how the laws of both Missouri and their own state could impact their franchise operation.