In the event of a Buildingstars franchise transfer, must the transferee have all permits and licenses necessary to operate the business?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. By FRANCHISEE. 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. BUILDINGSTARS will approve a sale, Transfer or change in ownership under the following conditions:
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- Governmental Compliance. The Transfer is conducted in compliance with applicable laws and regulations and the transferee has all permits and licenses necessary to operate the Business;
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Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a condition for Buildingstars to approve a franchise transfer is that the transferee has all the necessary permits and licenses to operate the business. This requirement ensures that the new franchisee can legally and effectively continue business operations without interruption.
For a prospective Buildingstars franchisee, this means that if they plan to sell their franchise, the potential buyer must meet all regulatory requirements. This includes securing all local, state, and federal permits and licenses required to run a commercial cleaning business. The original franchisee should consider this when determining the pool of potential buyers, as not every candidate will qualify.
This stipulation protects Buildingstars by ensuring that all franchisees, including transferees, operate legally and maintain the brand's reputation. It also aligns with standard franchising practices, where franchisors typically require transferees to meet the same operational and legal standards as new franchisees.