factual

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

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding anything herein to the contrary, under no circumstances will BUILDINGSTARS be obligated to replace any customer accounts that have been transferred pursuant to the Transfer of Interest.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

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.

For a prospective Buildingstars franchisee, this is an important consideration when planning to sell their franchise. The value of the franchise may be impacted if there is no guarantee of customer account replacement upon transfer. This could affect the sale price and the overall attractiveness of the franchise to potential buyers.

This policy is clearly stated within the contracts section of the FDD, emphasizing that franchisees should be aware of this condition before entering into a franchise agreement with Buildingstars. It is crucial for franchisees to understand the terms and conditions related to the transfer of interest to avoid any misunderstandings or financial losses in the future.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.