Will Buildingstars determine the value of the Buildingstars business upon a transfer?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Although BUILDINGSTARS will not be required to determine the value of business upon a Transfer, if in BUILDINGSTARS' reasonable judgment, the purchase price or terms of the sale are not economically feasible to the proposed assignee, BUILDINGSTARS can withhold its consent to such an assignment or Transfer.
Further, BUILDINGSTARS may, in good faith, notify FRANCHISEE, stating the reasons that BUILDINGSTARS has elected to withhold approval of the proposed Transfer.
Notwithstanding the foregoing, BUILDINGSTARS' approval of the Transfer shall not be deemed to imply or warrant that the purchase price or terms of sale are economically feasible, and BUILDINGSTARS hereby disclaims any responsibility for making any such determination.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars is not required to determine the value of the business upon a transfer. However, if Buildingstars believes that the purchase price or terms of the sale are not economically feasible for the proposed assignee, Buildingstars can withhold its consent to the transfer. Buildingstars may notify the franchisee in good faith, stating the reasons for withholding approval.
Even if Buildingstars approves the transfer, this approval does not imply or warrant that the purchase price or terms of sale are economically feasible. Buildingstars disclaims any responsibility for making such a determination. This means the franchisee is responsible for ensuring they receive fair value for their business when transferring it.
This policy places the onus on the franchisee to negotiate the terms of the sale and determine the business's value independently. Prospective franchisees should consider this when planning their exit strategy and may want to seek professional advice to assess the value of their Buildingstars franchise before attempting to transfer it.