Does Buildingstars require acceptance and notice of acceptance of undertakings from guarantors?

According to Buildingstars's 2025 Franchise Disclosure Document, the company requires acceptance and notice of acceptance by Buildingstars or its affiliates regarding the undertakings of guarantors. This means that any individual or entity acting as a guarantor for a Buildingstars franchisee's obligations must have their commitment formally accepted by Buildingstars, and they must receive official notification of this acceptance.

This requirement is designed to protect Buildingstars by ensuring that guarantors are fully aware of their responsibilities and that Buildingstars has formally acknowledged their commitment. By requiring acceptance and notice, Buildingstars aims to avoid potential disputes or misunderstandings regarding the guarantor's obligations. This also ensures that the guarantor cannot claim ignorance of their obligations under the guaranty.

For a prospective Buildingstars franchisee, this implies that if a guarantor is involved in their franchise agreement, the guarantor will need to sign documents indicating their understanding and acceptance of their obligations. Buildingstars will then provide formal notice to the guarantor acknowledging their acceptance. This process is a standard practice in franchising where a third party guarantees the franchisee's performance, providing an additional layer of security for the franchisor.