Is the transferee of a Buildingstars franchise required to complete the initial training program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee and/or transferee's management team, including a designated manager, must successfully complete the initial training program.
In addition, BUILDINGSTARS can withhold consent if the transferee does not have adequate previous management experience, in BUILDINGSTARS' sole judgment, in order to fulfill the obligations of the FRANCHISEE;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the transferee and/or the transferee's management team, including a designated manager, must successfully complete the initial training program. Buildingstars can also withhold consent for the transfer if the transferee lacks adequate previous management experience, as determined solely by Buildingstars, to fulfill the franchisee's obligations.
This requirement ensures that the new owner or manager is properly trained in the Buildingstars system and can maintain the standards of operation. It protects the brand's reputation and ensures consistency across all franchise locations.
For a prospective Buildingstars franchisee, this means that if they plan to sell their franchise, the potential buyer must be willing to undergo the initial training. This could affect the pool of potential buyers and the terms of the sale. Buildingstars also retains the right to refuse a transfer if they deem the transferee unqualified due to lack of management experience, regardless of training completion.
In the event of the franchisee's death or incapacity, the designated heir who will continue to operate the Buildingstars franchise must also meet certain conditions. Specifically, a manager must have satisfactorily completed Buildingstars' Initial Training Program, either already or within thirty days of the transfer.