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

According to Buildingstars' 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 (a "transfer"), 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 seller and the buyer of a Buildingstars franchise. A selling franchisee cannot promise a specific customer base to a potential buyer, as Buildingstars makes no guarantee that those accounts will remain with the franchise after the transfer. A prospective buyer needs to understand that the value of the franchise is not necessarily tied to the existing customer accounts.

This lack of guarantee could affect the sale price of the franchise and introduces risk for the buyer. The buyer should independently assess the stability and transferability of the customer accounts during their due diligence. It would be prudent for a potential buyer to discuss this policy with existing Buildingstars franchisees and to seek clarification from Buildingstars regarding the factors that might influence the retention of customer accounts after a transfer.