What is the cure period Buildingstars provides to a franchisee before terminating the agreement for good cause?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, the cure period offered to a franchisee before Buildingstars terminates the agreement depends on the reason for termination.
For "good cause" terminations, Buildingstars will provide the franchisee at least ninety (90) days prior written notice of termination. The franchisee then has thirty (30) days from the date of the notice to correct any claimed deficiency. If the deficiency is corrected within that 30-day window, the termination notice is voided. However, if the franchisee fails to correct the deficiency within the 30-day period, Buildingstars can proceed with terminating the agreement ninety (90) days after the original default notice. Note that state law may require a longer or shorter notice period. Good cause includes not performing the terms of the agreement, committing an act that constitutes good cause under state law, engaging in illegal or deceptive practices, failing to operate the business for three consecutive days without justification, diverting fees, or failing to properly service customers.
For termination due to nonpayment of sums or failure to open the business as specified, Buildingstars will grant the franchisee ten (10) days to remedy the default. If the franchisee does not correct the deficiency within ten (10) days, Buildingstars can terminate the agreement ninety (90) days after the original notice.
However, Buildingstars can terminate the franchise immediately upon notice, without an opportunity to cure, if state law permits and the cause is due to a felony conviction, fraudulent activity, abandonment of the franchise, bankruptcy, giving more than two insufficient funds checks within a year, or failing to meet the Minimum Revenue Requirement in any month, or any other act or omission which permits termination without notice under applicable state law.