What is the cure period Buildingstars provides for most defaults before termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Subject to applicable law and except as otherwise provided in this Agreement, BUILDINGSTARS will give the FRANCHISEE at least ninety (90) days prior written notice of
termination, [unless a longer period of time is required or shorter period of time is permitted by applicable state law]. The notice shall state the reason(s) for termination and shall provide that the FRANCHISEE has thirty (30) days from the date of said notice to correct any claimed deficiency. If the deficiency is corrected within thirty (30) days, the notice shall be void. If the deficiency is not corrected within said thirty (30) day period, BUILDINGSTARS may terminate this Agreement ninety (90) days after the date the original written notice of default was given to FRANCHISEE.
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- 10 Day Opportunity to Cure BUILDINGSTARS may also terminate this Agreement for nonpayment of sums due to BUILDINGSTARS or BUILDINGSTARS' Affiliates or suppliers; or failure of FRANCHISEE to open the Business in accordance with the time periods specified in this Agreement.
If termination is based on the foregoing, the FRANCHISEE shall be entitled to written notice of default, but BUILDINGSTARS shall [if permitted by applicable law] only be required to grant FRANCHISEE ten (10) days to remedy such default.
If not cured within the applicable period, BUILDINGSTARS shall have the right to terminate this Franchise Agreement to be effective no less than ninety (90) days after the original notice.
Without Opportunity to Cure.
Notwithstanding anything contained herein to the contrary, if state law permits, BUILDINGSTARS shall be permitted to terminate the franchise immediately upon notice when the basis or grounds for cancellation is: (a) FRANCHISEE or its owners are convicted of a felony or any other criminal misconduct which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the giving of more than two (2) no account or insufficient funds checks within a twelve-month period; or (f) failing to generate the Minimum Revenue Requirement in any month; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the standard cure period for most defaults is 30 days. Buildingstars will provide the franchisee at least 90 days prior written notice of termination, which includes the reason(s) for termination. The franchisee then has 30 days from the date of the notice to correct the deficiency. If the franchisee corrects the deficiency within the 30-day period, the termination notice is voided. If the franchisee does not correct the deficiency within the 30-day period, Buildingstars can terminate the agreement 90 days after the original default notice.
However, there are exceptions to the 30-day cure period. Buildingstars may terminate the agreement with only a 10-day cure period for nonpayment of sums due to Buildingstars, its affiliates, or suppliers, or for failure to open the business within the specified time frame.
In certain situations, Buildingstars can terminate the franchise immediately without any opportunity to cure, if permitted by state law. These situations include: conviction of a felony or criminal misconduct that materially affects the franchise, fraudulent activity, abandonment of the franchise, bankruptcy or insolvency of the franchisee, giving more than two insufficient funds checks within a year, or any act that allows termination without notice under applicable state law.
Prospective franchisees should be aware of these varying cure periods and the specific circumstances that trigger them, as failure to meet the obligations within the allotted time can lead to termination of the franchise agreement. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.