Until what point in time does the guarantee from Buildingstars International, Inc. continue regarding the obligations of Buildingstars Management, Inc. under the Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Buildingstars International, Inc., a Missouri corporation (the "Guarantor"), located at 33 Worthington Access Drive, St. Louis, MO 63043, absolutely and unconditionally guarantees to assume the duties and obligations of Buildingstars Management, Inc., a Missouri corporation (the "Franchisor") located at 33 Worthington Access Drive, St. Louis, MO 63043, under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations ofthe Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part ofthe Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars International, Inc. guarantees the obligations of Buildingstars Management, Inc. under the Franchise Agreement. This guarantee remains in effect until all obligations of Buildingstars Management, Inc. under the franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee ends when the liability of Buildingstars Management, Inc. to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first.
This guarantee ensures that franchisees have recourse to Buildingstars International, Inc. if Buildingstars Management, Inc. fails to meet its obligations. However, the guarantee does not end if a franchisee's claim against Buildingstars Management, Inc. is still outstanding. Buildingstars International, Inc. also waives the requirement to receive notice of acceptance of the guarantee but does not waive the right to receive notice of default on the part of Buildingstars Management, Inc.
This type of guarantee is intended to provide franchisees with an additional layer of security. It assures franchisees that the franchisor's obligations will be met, even if the primary entity, Buildingstars Management, Inc., faces financial or operational difficulties. The guarantee is binding on Buildingstars International, Inc. and its successors and assigns, providing long-term assurance to franchisees.