What happens to a Buildingstars franchisee's rights upon termination or expiration of the franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Consequences of Termination.
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE'S rights hereunder shall terminate.
FRANCHISEE shall immediately thereafter discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of BUILDINGSTARS' business and return any copyrighted materials which have been provided to FRANCHISEE by BUILDINGSTARS, and if BUILDINGSTARS requests, shall assign its telephone numbers to BUILDINGSTARS and execute any and all documents necessary to do so.
Further, FRANCHISEE shall pay all amounts due to BUILDINGSTARS, BUILDINGSTARS' Affiliates, and suppliers.
Further, FRANCHISEE agrees to return any and all materials which contain Confidential Information in whatever form, including but not limited to the Confidential Operation Manual, to BUILDINGSTARS immediately.
FRANCHISEE'S obligations regarding Trade Secrets and Confidential Information and Non-Solicitation and Non-Competition shall remain in full force and effect in accordance with their terms, notwithstanding such termination.
FRANCHISEE will immediately cease providing services to all Customers and forfeit all rights it has to the customer accounts. Upon request of BUILDINGSTARS, FRANCHISEE will assign to BUILDINGSTARS any or all of FRANCHISEE'S Customer contracts and BUILDINGSTARS will have the right to either service the accounts or assign the servicing of the accounts to others. At no such time will FRANCHISEE terminate a written contract until proper notice has been given to BUILDINGSTARS prior to termination.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, all rights of the franchisee are terminated, regardless of the reason for termination or expiration. The franchisee must immediately stop using all Buildingstars's marks, signs, colors, structures, printed goods, and advertising materials. The franchisee also needs to return any copyrighted materials provided by Buildingstars. If Buildingstars requests, the franchisee must assign its telephone numbers to Buildingstars and execute any necessary documents to do so.
Furthermore, the Buildingstars franchisee is obligated to pay all outstanding amounts due to Buildingstars, its affiliates, and suppliers. All materials containing confidential information, including the Confidential Operation Manual, must be returned to Buildingstars immediately. The franchisee's obligations regarding trade secrets, confidential information, non-solicitation, and non-competition remain in full effect, even after termination or expiration.
The Buildingstars franchisee must immediately stop providing services to all customers and will forfeit all rights to the customer accounts. Upon Buildingstars's request, the franchisee will assign any or all customer contracts to Buildingstars. Buildingstars then has the right to either service these accounts or assign them to others. The franchisee cannot terminate any written contract without providing proper notice to Buildingstars before termination.