What are the grounds for Buildingstars to immediately terminate the franchise agreement without an opportunity to cure, assuming state law permits?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Buildingstars can terminate the franchise agreement immediately without giving the franchisee an opportunity to cure the issue if state law allows. This immediate termination can occur under specific circumstances. These circumstances include if the franchisee or its owners are convicted of a felony or any other criminal misconduct that significantly harms the franchise's operation, reputation, or goodwill.
Immediate termination is also permitted in cases of fraudulent activity that materially and adversely affects the franchise. Other grounds for immediate termination are abandonment of the franchise, bankruptcy or insolvency of the franchisee, or giving more than two no account or insufficient funds checks within a twelve-month period.
Additionally, Buildingstars can immediately terminate the agreement if the franchisee fails to meet the Minimum Revenue Requirement in any month. Finally, any other act or omission that, under applicable state law, allows for termination without notice or an opportunity to cure can also result in immediate termination by Buildingstars.