Regarding the Buildingstars franchise agreement, what does the franchisee warrant about its execution, delivery, and performance?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. FRANCHISEE and its guarantors represent and warrant that the execution, delivery and performance of this Agreement by FRANCHISEE and the Guarantee and Assumption of Obligations by the guarantors do not and will not violate, conflict with or result in the breach of any term, condition or provision of any contract or agreement, or require the consent of any other person or entity.
- C. Under applicable U.S. Law, including without limitation executive order 1224, signed on September 23, 2001 (the "Order"), FRANCHISEE is prohibited from engaging in any transaction with any person engaged in, or with a person aiding any person engaged in acts of terrorism as defined in the Order. Accordingly, FRANCHISEE does not and hereafter will not engage in any terrorist activity. In addition, FRANCHISEE is not affiliated with and does not support any individual or entity engaged in, contemplating, or supporting terrorist activity. Finally, FRANCHISEE is not acquiring the rights granted under this Agreement with the intent to generate funds to channel to any individual or entity engaged in, contemplating, or supporting terrorist activity, or to otherwise support or further any terrorist activity.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the franchisee and its guarantors make specific representations and warranties regarding the franchise agreement. Specifically, they warrant that their execution, delivery, and performance of the agreement will not violate, conflict with, or breach any term, condition, or provision of any other contract or agreement. They also warrant that it will not require consent from any other person or entity. This is a standard clause in franchise agreements to ensure the franchisee is legally able to enter into the agreement.
Furthermore, the Buildingstars franchisee warrants compliance with U.S. laws related to terrorism. The franchisee confirms they do not engage in terrorist activities, are not affiliated with or support individuals or entities involved in terrorism, and are not acquiring franchise rights to generate funds for terrorist activities. This clause reflects Buildingstars' commitment to adhering to legal and ethical standards and preventing any association with illegal activities.
These warranties are crucial because any breach could lead to legal repercussions and potential termination of the franchise agreement. Buildingstars relies on these assurances to ensure the franchisee's lawful and ethical operation of the business. Prospective franchisees should carefully review their existing contractual obligations and ensure they fully understand and can comply with these warranties before signing the Buildingstars franchise agreement.