Does the transferee of a Buildingstars franchise have to assume all liabilities from the prior operation of the business?

According to Buildingstars' 2025 Franchise Disclosure Document, a transferee of a Buildingstars franchise must assume all liabilities and obligations from the prior operation of the business. This includes assuming the lease agreement. The transferee must also comply with any other reasonable requirements that Buildingstars may impose.

This requirement means that anyone buying an existing Buildingstars franchise takes on the previous owner's debts, legal issues, and other responsibilities related to the business. A prospective buyer should carefully investigate the business's history and financial standing before completing the transfer to understand the full scope of potential liabilities.

In addition to assuming liabilities, the transferee, including a designated manager, must successfully complete the initial training program. Buildingstars can also withhold consent to the transfer if the transferee lacks adequate previous management experience, in Buildingstars' sole judgment, to fulfill the obligations of the franchisee. This ensures that the new owner is well-prepared to manage the Buildingstars franchise effectively.

Buildingstars also has the discretion to require the original franchisee and any guarantors to remain liable for the obligations of the new assignee, even after the transfer is approved. This provides Buildingstars with an additional layer of security and recourse in case the new franchisee fails to meet their obligations.