Does acceptance of partial payment by Buildingstars from the franchisee affect the Buildingstars Guaranty?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the acceptance of partial payment or performance by Buildingstars from the franchisee does not impact the Buildingstars Guaranty. The guaranty remains in effect during the term of the agreement.
Specifically, the guarantor's liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or indulgence that Buildingstars may grant to the franchisee or any other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims.
This provision protects Buildingstars by ensuring that the guaranty remains valid even if they offer some flexibility to the franchisee in payment terms. For a prospective franchisee, this means that the guarantor's obligations are not lessened by any leniency Buildingstars might show in payment matters. The guaranty remains a continuing and irrevocable commitment during the term of the agreement, regardless of partial payments or other considerations.