Is the Buildingstars Guarantee continuing and irrevocable during the term of the Agreement?
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.
If BUILDINGSTARS or any of the Affiliates are required to enforce this Guaranty and Assumption of Obligations in any judicial proceeding or appeal thereof, the GUARANTORS shall reimburse BUILDINGSTARS and Affiliates for its costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any written demand, claim, action, hearing or proceeding to enforce this Guaranty.
The undersigned Guarantors also recognize that certain disputes relating to the Franchise Agreement are to be resolved by arbitration and hereby consent to such arbitration. The terms contained in the Franchise Agreement and this Guarantee and Assumption of Obligations constitute the entire agreement between the parties, and there are no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the guaranty related to the Franchise Agreement is designed to be continuing and irrevocable throughout the term of the agreement. This means that the obligations of the guarantor remain in effect for the entire duration of the franchise agreement.
Specifically, the guarantor's obligations will not be modified or amended by actions such as Buildingstars accepting partial payments or performance, or compromising or releasing claims. This provision ensures that the guaranty remains enforceable regardless of any leniency or adjustments Buildingstars might make with the franchisee.
Furthermore, if Buildingstars needs to enforce the Guaranty and Assumption of Obligations through legal proceedings, the guarantors are responsible for covering all associated costs and expenses. These expenses include reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation, court costs, and other litigation-related expenses. This obligation extends to expenses incurred before, during, and in anticipation of any legal action to enforce the guaranty.
This clause also stipulates that disputes related to the Franchise Agreement will be resolved through arbitration, to which the guarantors consent. The terms outlined in both the Franchise Agreement and the Guarantee and Assumption of Obligations constitute the complete agreement, superseding any prior representations or agreements not included in these documents. This comprehensive approach aims to provide clarity and legal certainty for all parties involved.