What must a Buildingstars franchisee do to renew or extend their franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| 1 year for Technician's Franchise Agreement; 3 years for On-Site Manager | ||
| a. Term of the franchise | Section V | Franchise Agreement and 5 years for Corporate Franchise Agreement. |
| b. Renewal or extension | Section V | 3 renewals for 1 year each for Technician Franchise Agreement, however, if a new franchise agreement is not signed, the original franchise agreement continues on a month-to-month basis; 3 renewals for 3 years each for On-Site Manager Franchise Agreement and 3 renewals of 5 years each for Corporate Franchise Agreement - all subject to terms of Section V of the Franchise Agreement. |
| c. Requirement for franchisee to renew or extend | Section V | Give notice, sign the then current franchise agreement, and pay a renewal fee. The then current franchise agreement may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements. Corporate Program franchises must also have been in full compliance with the Minimum Revenue Requirements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 29–31)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their franchise agreement involve several steps. As outlined in Section V of the Franchise Agreement, a franchisee must provide notice of their intent to renew, sign the then-current franchise agreement, and pay a renewal fee.
It is important to note that the terms and conditions of the renewed franchise agreement may differ significantly from the previous agreement. These changes could include different fee requirements, which could impact the franchisee's financial obligations. For Corporate Program franchises, there is an additional requirement: the franchisee must have been in full compliance with the Minimum Revenue Requirements to be eligible for renewal.
These stipulations are typical in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the Buildingstars business model. Franchisees should carefully review the new franchise agreement and assess the potential impact of any changes before committing to a renewal. Understanding these requirements is crucial for any Buildingstars franchisee planning to continue their business relationship beyond the initial term.