Can Buildingstars require the franchisee to purchase new equipment as a result of modifications to the system?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE understands and agrees that due to changes in competitive circumstances, presently unforeseen changes in the needs of Customers, and/or presently unforeseen technological innovations, the System may need to undergo changes in order that it best serve the interests of the FRANCHISEE, BUILDINGSTARS and System. Subject to the other provisions of this Agreement, FRANCHISEE expressly agrees to abide by any such modifications, changes, additions, deletions and alterations including but not limited to the purchase of new and additional equipment and acknowledge that such modifications, changes, additions, deletions and alterations may require further expenditures by FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars can require franchisees to purchase new and additional equipment as a result of changes to the system.
The FDD states that the Buildingstars system may need to undergo changes due to competitive circumstances, changes in customer needs, or technological innovations. Franchisees must abide by any modifications, changes, additions, deletions, and alterations to the system. These changes may include purchasing new and additional equipment, which may require further expenditures by the franchisee.
This means that a Buildingstars franchisee may be required to invest in new equipment during the term of their franchise agreement to keep up with changes in the industry or customer demands. This could represent a significant, unplanned expense, so prospective franchisees should consider this potential financial burden.
It is important for prospective franchisees to inquire about the types of system modifications that have been implemented in the past, the costs associated with those changes, and how frequently Buildingstars updates its equipment or technology. Understanding the potential for required equipment upgrades is crucial for budgeting and financial planning as a Buildingstars franchisee.