What does the Guarantor consent to and agree to regarding their liability under the Buildingstars guaranty?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) acceptance and notice of acceptance by BUILDINGSTARS or Affiliates of the foregoing undertakings;
- (2) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
- (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
- (4) any right he or she may have to require that an action be brought against FRANCHISEE or any other person as a condition of liability;
- (5) all rights to payments and claims for reimbursement or subrogation which any of the GUARANTORS may have against the FRANCHISEE arising as a result of the GUARANTORS' execution of and performance under this guaranty; and
- (6) any and all other notices and legal or equitable defenses to which he or she may be entitled.
Each of the undersigned consents and agrees that:
- (1) his or her direct and immediate liability under this guaranty shall be joint and several;
- (2) he or she shall render any payment or performance required under the Agreement upon demand if the FRANCHISEE fails or refuses punctually to do so;
- (3) such liability shall not be contingent upon or conditioned upon pursuit by BUILDINGSTARS or Affiliates of any remedies against the FRANCHISEE or any other person; and
- (4) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or the indulgence which BUILDINGSTARS or Affiliates may from time to time grant to the
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' 2025 Franchise Disclosure Document, the guarantor consents to several conditions regarding their liability. The guarantor agrees to acceptance and notice of acceptance by Buildingstars or its affiliates, waiving notice of demand for payment or nonperformance, and waiving protest and notice of default. They also relinquish any right to require Buildingstars to first bring an action against the franchisee or any other person before pursuing the guarantor.
Furthermore, the guarantor gives up all rights to payments and claims for reimbursement or subrogation they may have against the franchisee arising from their execution and performance under the guaranty. They also waive any and all other notices and legal or equitable defenses to which they may be entitled.
Additionally, the guarantor consents and agrees to direct and immediate joint and several liability under the guaranty. They must render any payment or performance required under the agreement upon demand if the franchisee fails or refuses to do so punctually. This liability is not contingent upon Buildingstars pursuing remedies against the franchisee or any other person. The guarantor's liability will not be diminished or affected by any extensions of time, credit, or indulgence granted by Buildingstars to the franchisee, including acceptance of partial payments or compromise of claims, and the guaranty remains continuing and irrevocable during the term of the agreement.
Finally, if Buildingstars has to enforce the Guaranty and Assumption of Obligations in any judicial proceeding or appeal, the guarantors must reimburse Buildingstars for all costs and expenses. These costs include 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 before, during, or in contemplation of any action to enforce the Guaranty. The guarantors also recognize that certain disputes related to the Franchise Agreement are to be resolved by arbitration and consent to such arbitration.