What conditions must a Buildingstars franchisee meet to be eligible to renew their franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
xes which a state or local government imposes on BUILDINGSTARS or its Affiliates' income.
- G. Customer Development Fee. If, within one year after termination, expiration or transfer of this Agreement, FRANCHISEE or any employee or affiliate of FRANCHISEE shall perform for any Customer, services similar to those to be performed under this Agreement but performed outside of this Agreement, FRANCHISEE shall pay to BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid to FRANCHISEE, its employee or affiliate of FRANCHISEE, for such services.
V. TERM
The term of this Agreement shall be for a period of one (1) year from the date of final execution, unless sooner terminated in accordance with this Agreement. If FRANCHISEE is in full compliance with the terms of this Agreement, FRANCHISEE shall have the right to renew for three (3) additional terms of one (1) year each, provided that FRANCHISEE is not in default under this Agreement at the time of each renewal and FRANCHISEE executes the most current franchise agreement being utilized by BUILDINGSTARS and pays BUILDINGSTARS a renewal fee of $200. Notwithstanding the foregoing, BUILDINGSTARS may, in its discretion, refuse to renew the Franchise if FRANCHISEE has been notified of defaults (even if subsequently cured) under the Franchise Agreement more than two (2) times during the initial term or more than three (3) times during any renewal term, even if FRANCHISEE is not in default at the time of such renewal. The then current franchise agreement may contain significantly different terms than this Agreement. On renewal, BUILDINGSTARS is under no obligation to provide FRANCHISEE with any new customer accounts. FRANCHISEE agrees to give BUILDINGSTARS not less than one hundred twenty (120) days written notice of its desire to renew the franchise, prior to the end of the initial term or the renewal term. In the event that BUILDINGSTARS elects not
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise agreement for three additional one-year terms if they meet certain conditions. The initial term of the Buildingstars Franchise Agreement is one year. To be eligible for renewal, the franchisee must be in full compliance with the terms of the existing agreement and not be in default at the time of renewal.
Additionally, the franchisee must execute the most current franchise agreement used by Buildingstars and pay a renewal fee of $200. It is important to note that the terms of the renewed agreement may differ significantly from the original agreement. Buildingstars is not obligated to provide the franchisee with any new customer accounts upon renewal.
Buildingstars retains the discretion to refuse renewal if the franchisee has been notified of defaults under the Franchise Agreement more than two times during the initial term or more than three times during any renewal term, even if the franchisee is not in default at the time of renewal. The franchisee must provide Buildingstars with written notice of their desire to renew at least 120 days before the end of the current term. If Buildingstars decides not to renew, they must notify the franchisee in writing within 90 days before the agreement's expiration. If a new franchise agreement is not executed and Buildingstars has not provided notice of non-renewal, the agreement will continue on a month-to-month basis, terminable by either party with 30 days' written notice.