factual

Under the Buildingstars franchise agreement, can a franchisee seek performance of the agreement from Buildingstars' affiliates?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

BUILDINGSTARS is the only entity obligated to FRANCHISEE hereunder. FRANCHISEE may not look to any of BUILDINGSTARS' Affiliates or related companies, other business entities or individuals for performance of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee cannot seek performance of the franchise agreement from Buildingstars' affiliates. The agreement explicitly states that Buildingstars is the only entity obligated to the franchisee under the agreement.

This means that the franchisee's recourse for any issues related to the franchise agreement is limited solely to Buildingstars. The franchisee cannot pursue any legal or contractual claims against Buildingstars' affiliates, related companies, or individuals for the performance of the agreement.

This provision protects Buildingstars' affiliates from potential liabilities arising from the franchise agreement. It is a fairly standard practice in franchising to limit the franchisee's recourse to the franchisor entity itself, as the franchisor is the direct party to the agreement. Prospective franchisees should be aware of this limitation and conduct their due diligence accordingly, focusing on the financial stability and reputation of Buildingstars as the sole responsible party.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.