For Buildingstars, what obligations are assumed by individuals who sign the Guarantee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation or limited liability company, all shareholders or members and their spouses of a corporate franchise or limited liability company franchise will sign our standard form Guarantee, which is attached to the Franchise Agreement. This Guarantee provides that each individual who signs is assuming and agreeing to discharge all obligations of the "Franchisee" under the Franchise Agreement.
Source: Item 15 — OBLIGATION OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF YOUR BUSINESS (FDD pages 28–29)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the guarantee stipulates that each individual signing it assumes and agrees to fulfill all obligations of the franchisee as outlined in the Franchise Agreement. This includes, but is not limited to, trade secrets, non-solicitation, and non-competition provisions, as well as adherence to regulations concerning the Marks, indemnification, and the consequences of termination, expiration, or transfer of interest. These obligations extend for the same duration that the franchisee is required to comply with these provisions.
Furthermore, the guarantors personally and unconditionally guarantee all debts and obligations the franchisee incurs to Buildingstars, its successors, assigns, affiliated entities, parent corporation, and subsidiaries. This encompasses obligations under the Franchise Agreement and those resulting from the purchase of products or services from Buildingstars and its affiliates.
The guarantors also waive several rights, including acceptance and notice of acceptance by Buildingstars, notice of demand for payment, protest and notice of default, and any right to require action against the franchisee as a condition of liability. They also relinquish rights to payments, claims for reimbursement or subrogation, and any legal or equitable defenses they may be entitled to. The guarantors consent to joint and several liability, agreeing to render payment or performance upon demand if the franchisee fails to do so, without requiring Buildingstars to pursue remedies against the franchisee first. This liability remains unaffected by any extensions of time, credit, or indulgence granted to the franchisee by Buildingstars.