What must the transferee execute when buying a Buildingstars franchise?

According to Buildingstars' 2025 Franchise Disclosure Document, a transferee—the party buying the franchise—must meet several requirements. Specifically, the transferee must execute a new Franchise Agreement that reflects the standard terms and conditions Buildingstars is offering in the franchisee's state at the time of the transfer. Additionally, the owners of the transferee entity must execute a personal guarantee. This ensures that the new franchisee is bound by the current franchise terms and that there is a personal commitment to the obligations under the agreement.

These requirements are in place to ensure that any new Buildingstars franchisee meets the brand's standards and is fully committed to operating the franchise according to the established guidelines. By requiring a new Franchise Agreement, Buildingstars can update the terms to reflect current business practices and legal requirements. The personal guarantee adds an extra layer of security for Buildingstars, as it holds the owners personally responsible for the franchise's performance.

Furthermore, the 2025 FDD states that the transferee must meet the established standards for new franchisees, be of good moral character, have a good credit rating, possess sufficient financial resources to operate the business, and have competent qualifications. These stipulations ensure that the transferee is well-suited to take over and successfully manage the Buildingstars franchise. Buildingstars also retains the right to disapprove any transfer if these conditions are not met, protecting the integrity and reputation of the franchise system.

In addition to executing the new Franchise Agreement and personal guarantee, the transferee must also agree to assume all liabilities and obligations from the prior operation of the business, including the lease, and comply with other reasonable requirements Buildingstars may impose. This comprehensive set of requirements aims to ensure a smooth transition and maintain the quality and consistency of the Buildingstars franchise network.