What happens if a Buildingstars franchisee engages in illegal or fraudulent business practices?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Termination by BUILDINGSTARS.
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- 30 Day Opportunity to Cure. BUILDINGSTARS may at its option, and without prejudice to any other rights or remedies provided for in this Agreement or at law or in equity, terminate this Agreement for "good cause". (Provided that state law permits BUILDINGSTARS has the right to terminate earlier if the "good cause" constitutes a default which is not curable.) Without limitation as to other situations, good cause for termination also exists if FRANCHISEE:
- (3) Engages in any illegal, fraudulent, unfair or deceptive business practice, which adversely affects the operation, maintenance, or goodwill of the franchise; or
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- 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: (b) fraudulent activity which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise;
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, engaging in illegal or fraudulent business practices can lead to termination of the franchise agreement. Specifically, Buildingstars may terminate the agreement for "good cause" if a franchisee engages in any illegal, fraudulent, unfair, or deceptive business practice that adversely affects the operation, maintenance, or goodwill of the franchise. In many cases, Buildingstars will provide a 30-day opportunity to cure the issue, but if state law permits, Buildingstars can terminate the agreement earlier if the "good cause" constitutes a default that is not curable.
Furthermore, Buildingstars can terminate the franchise immediately upon notice, without an opportunity to cure, if state law allows and if the franchisee is involved in fraudulent activity that materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise. This immediate termination clause underscores the seriousness with which Buildingstars views fraudulent or illegal activities.
These stipulations highlight the importance of ethical and legal compliance for Buildingstars franchisees. Prospective franchisees should understand that any deviation from these standards could result in the loss of their franchise. It is essential to operate with honesty and integrity to maintain the good standing of the franchise and avoid potential legal and financial repercussions.