Is Buildingstars obligated to replace any customer account that has been transferred pursuant to the Transfer of Interest?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is not obligated to replace any customer accounts that have been transferred as part of a Transfer of Interest. This means that if a franchisee sells their franchise to a new owner, Buildingstars does not guarantee that the new owner will retain the same customer accounts that the previous franchisee had.

This policy has significant implications for both the selling franchisee and the purchasing franchisee. The seller needs to be aware that the value of their franchise may be impacted if the customer accounts are not guaranteed to transfer. The buyer needs to assess the business carefully, understanding that Buildingstars provides no assurance of continued revenue from existing accounts.

This lack of guarantee could affect the negotiation of the sale price and the overall risk assessment for the buyer. It is essential for prospective franchisees to fully understand this aspect of the transfer process and to conduct thorough due diligence before purchasing a Buildingstars franchise. They should also inquire about the reasons behind this policy and any historical data on customer account retention during franchise transfers.