Does Buildingstars' consent to a transfer act as a waiver for subsequent transfers?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS has the right to reasonably disapprove any person or entity would have actual, legal or effective control over the Business and shall have the right to approve any Transfer. Consent to a Transfer shall not be deemed a waiver of BUILDINGSTARS' right to consent to any subsequent Transfers.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars' consent to a transfer does not act as a waiver for subsequent transfers. Buildingstars retains the right to approve or disapprove any transfer, meaning that each proposed transfer is evaluated independently.
This policy means that even if a franchisee receives approval for one transfer, they must still seek approval for any future transfers. Buildingstars' approval is contingent on various factors, including the transferee meeting the standards for new franchisees, compliance with laws and regulations, and the franchisee's adherence to the franchise agreement.
For a prospective Buildingstars franchisee, this indicates that the ability to transfer the franchise is not guaranteed and is subject to Buildingstars' ongoing approval. This condition provides Buildingstars with control over who enters the franchise system and helps maintain brand standards. Franchisees should be aware that each transfer request will be assessed on its own merits, and prior approval does not ensure future approvals.