Does Buildingstars require franchisee to warrant that their performance of the agreement will not violate any existing contracts?
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, franchisees and their guarantors must represent and warrant that their execution, delivery, and performance of the Franchise Agreement will not violate any existing contracts or agreements. This includes ensuring that their actions will not conflict with or result in a breach of any term, condition, or provision of any contract or agreement. Furthermore, they must ensure that their performance does not require the consent of any other person or entity.
This requirement places a significant responsibility on the franchisee to conduct a thorough review of any existing contractual obligations before entering into the Buildingstars Franchise Agreement. Failure to comply with this warranty could lead to legal complications and potential breaches of other agreements, exposing the franchisee to liability from third parties.
Buildingstars also includes a clause related to terrorism, where the franchisee warrants compliance with U.S. laws, including Executive Order 1224. The franchisee must not engage in any transactions with individuals or entities involved in terrorism, nor support any terrorist activities. This reflects Buildingstars' commitment to adhering to legal and ethical standards, and it is a condition for granting franchise rights.