Does Buildingstars' consent to a transfer waive its right to consent to 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 waive its right to consent to any subsequent transfers. This means that even if Buildingstars approves a franchisee's request to transfer their franchise to a new owner, Buildingstars retains the right to approve or disapprove any future transfers of that franchise.
This provision protects Buildingstars' interests by allowing them to maintain control over who operates a Buildingstars franchise. Buildingstars can ensure that all franchisees meet their standards and qualifications, even if the franchise has been transferred multiple times. This helps to maintain the consistency and quality of the Buildingstars brand.
For a prospective franchisee, this means that they cannot assume that they will be able to freely transfer their franchise to anyone they choose. Buildingstars has the right to approve or disapprove any transfer, and their consent to one transfer does not mean they will consent to future transfers. Franchisees should carefully consider this provision before entering into a franchise agreement with Buildingstars.