Can Buildingstars withhold consent to a transfer if the transferee lacks adequate management experience?

According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars can withhold consent to a franchise transfer if the transferee does not have adequate previous management experience. Buildingstars will make this determination in its sole judgment, based on whether the transferee can fulfill the obligations of the franchisee.

This means that if a franchisee wants to sell their Buildingstars franchise, the potential buyer's management experience will be a key factor in whether Buildingstars approves the transfer. A prospective buyer lacking sufficient experience could be rejected, potentially jeopardizing the sale.

This clause protects Buildingstars by ensuring that new franchisees have the skills to successfully manage the business. It is fairly common in franchising to have requirements that a transferee meet certain qualifications, to protect the brand and the existing franchisees. A prospective franchisee should carefully consider this when planning an exit strategy.