What happens if a Buildingstars franchisee abandons the franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, if a franchisee abandons the franchise, Buildingstars has the right to terminate the franchise agreement immediately upon notice, provided that state law permits such action. This means that Buildingstars does not have to provide an opportunity for the franchisee to correct the abandonment.
Abandonment of the franchise is listed among other serious grounds for immediate termination, such as a franchisee being convicted of a felony, engaging in fraudulent activity, or declaring bankruptcy. These actions are considered significant breaches of the franchise agreement that can severely impact the Buildingstars brand and its operations.
This policy is relatively standard in the franchise industry, as franchisors typically reserve the right to terminate agreements immediately in cases of severe misconduct or abandonment to protect their brand and the interests of other franchisees. A prospective Buildingstars franchisee should be aware of this clause and understand the implications of abandoning their franchise, as it would lead to immediate termination without an opportunity to rectify the situation.