For Buildingstars, what is the purpose of the Guarantee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
GUARANTEE OF PERFORMANCE
For value received, Buildingstars International, Inc., a Missouri corporation (the "Guarantor"), located at 33 Worthington Access Drive, St. Louis, MO 63043, absolutely and unconditionally guarantees to assume the duties and obligations of Buildingstars Management, Inc., a Missouri corporation (the "Franchisor") located at 33 Worthington Access Drive, St. Louis, MO 63043, under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations ofthe Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part ofthe Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
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' 2025 Franchise Disclosure Document, the Guarantee of Performance ensures that Buildingstars International, Inc. will fulfill the obligations of Buildingstars Management, Inc. under the franchise registration in each state and the Franchise Agreement. This guarantee remains effective until all obligations of Buildingstars Management, Inc. are met or the liability to franchisees is completely discharged.
The guarantee means that franchisees have an assurance that the duties and obligations outlined in the Franchise Agreement will be upheld. Buildingstars International, Inc., as the Guarantor, is committed to stepping in if Buildingstars Management, Inc. fails to meet its responsibilities. This provides a layer of security for franchisees, knowing that another entity is backing the agreement.
The guarantee does not release the Guarantor from liability if a franchisee's claim against the Franchisor is still outstanding. The Guarantor also does not waive the right to receive notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns, ensuring long-term commitment and responsibility.