Under what circumstances is Buildingstars not liable to the franchisee for prospective profits or special damages?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars will not be liable to the franchisee for prospective profits, or special, indirect, punitive, or consequential damages. This limitation applies to any conduct arising out of the franchise agreement or the relationship between Buildingstars and the franchisee.

This means that if a Buildingstars franchisee believes they have suffered losses due to actions or inactions by Buildingstars, the franchisee will be unable to recover damages for lost future profits or any special or indirect losses. The franchisee is also barred from receiving punitive damages, which are intended to punish the wrongdoer, or consequential damages, which are losses that occur as a result of the initial harm.

This clause significantly limits Buildingstars's financial exposure in case of disputes with franchisees. It is a common practice in franchising to include clauses that limit liability, but franchisees should carefully consider the implications of such limitations. Prospective franchisees should seek legal counsel to fully understand the scope and impact of this provision before signing the franchise agreement.