What is guaranteed by the guarantor for Buildingstars franchisees?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Buildingstars International, Inc., a Missouri corporation (the "Guarantor"), located at 33 Worthington Access Drive, St. Louis, MO 63043, absolutely and unconditionally guarantees to assume the duties and obligations of Buildingstars Management, Inc., a Missouri corporation (the "Franchisor") located at 33 Worthington Access Drive, St. Louis, MO 63043, under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations ofthe Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part ofthe Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars International, Inc. guarantees the duties and obligations of Buildingstars Management, Inc. under its franchise registration in each state where the franchise is registered. This also applies to the Franchise Agreement as identified in the 2025 Franchise Disclosure Document, including any amendments, modifications, or extensions made to the agreement with franchisees.
This guarantee remains in effect until all obligations of Buildingstars Management, Inc. under its franchise registrations and the Franchise Agreement are fulfilled. It also continues until the liability of Buildingstars Management, Inc. to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first.
Importantly, the guarantee specifies that Buildingstars International, Inc. will not be released from liability if a franchisee's claim against Buildingstars Management, Inc. remains outstanding. The guarantor waives the requirement to receive notice of acceptance but does not waive the right to receive notice of default on the part of the franchisor. This guarantee is binding on Buildingstars International, Inc. and its successors and assigns, providing a layer of security for franchisees.