Is the Buildingstars Guarantor's liability contingent upon Buildingstars pursuing remedies against the Franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the liability of the guarantor is not contingent upon Buildingstars pursuing remedies against the franchisee. The guarantor's obligations are independent of any actions Buildingstars may or may not take against the franchisee. This means that Buildingstars can seek payment or performance directly from the guarantor without first having to pursue legal action or other remedies against the franchisee.
This arrangement provides Buildingstars with a direct avenue for recourse in case of the franchisee's failure to meet their obligations. The guarantor's liability is joint and several, meaning each guarantor is individually liable for the full amount of the obligation. Buildingstars can demand immediate payment or performance from the guarantor if the franchisee fails to fulfill their duties under the agreement.
For a prospective Buildingstars franchisee, this highlights the importance of understanding the full scope of the guaranty agreement. Individuals considering acting as a guarantor should be fully aware that their liability is direct and immediate, and not dependent on Buildingstars first exhausting all options with the franchisee. This arrangement is designed to protect Buildingstars' interests by ensuring a readily available source of payment or performance should the franchisee default.