factual

What representation does Buildingstars require from the franchisee and its guarantors regarding conflicts with existing contracts or agreements?

Buildingstars Franchise · 2025 FDD

Answer 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.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars requires that the franchisee and its guarantors represent and warrant that their execution, delivery, and performance of the Franchise Agreement and the Guarantee and Assumption of Obligations do not and will not violate, conflict with, or result in a breach of any term, condition, or provision of any contract or agreement. They also must confirm that it does not require the consent of any other person or entity.

This means that before signing the franchise agreement, prospective Buildingstars franchisees and their guarantors must carefully review all existing contracts and agreements to ensure there are no conflicts. This includes employment agreements, partnership agreements, leases, or any other legal obligations that could be affected by entering into a franchise agreement with Buildingstars.

If a conflict exists, the franchisee must resolve it before proceeding with the franchise. Failure to do so could result in a breach of the franchise agreement, leading to potential legal and financial repercussions. This representation protects Buildingstars by ensuring that franchisees are free to fully commit to the franchise obligations without interference from prior commitments. It is a standard practice in franchising to avoid legal entanglements that could hinder the franchisee's ability to operate the business effectively.

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.