Under what conditions is Buildingstars free to assign its rights and obligations under the Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms of this Section X are assignable by BUILDINGSTARS and shall inure to the benefit of BUILDINGSTARS, as well as its successors and assigns. In the event of any assignment, sale, merger or change in ownership or structure of BUILDINGSTARS, the resulting entity shall step into the place of BUILDINGSTARS, without any additional consent of or notice to FRANCHISEE, as if the term BUILDNGSTARS were defined in this Agreement to include such entity.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the right to assign its rights and obligations under the Franchise Agreement. The terms outlined in Section X of the agreement are assignable by Buildingstars and will benefit Buildingstars, its successors, and assigns.
In the event of any assignment, sale, merger, or change in ownership or structure of Buildingstars, the resulting entity will assume the position of Buildingstars without requiring additional consent from or notice to the franchisee. This is as if the term 'BUILDNGSTARS' were defined in the agreement to include such entity.
This clause provides Buildingstars with significant flexibility in structuring its business operations and allows for potential changes in ownership or corporate structure without needing to renegotiate franchise agreements with individual franchisees. For a prospective franchisee, this means that the entity they initially contract with may change over time due to these types of business transactions.