What happens if a Buildingstars franchisee fails to operate the business for three consecutive days?
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:
- (1) Does not perform any and all of the lawful terms, conditions, and obligations of this Agreement, or the Confidential Operations Manual; or
- (2) Commits any other act which constitutes good cause under applicable state law or court decisions; or
(3) Engages in any illegal, fraudulent, unfair or deceptive business practice, which adversely affects the operation, maintenance, or goodwill of the franchise; or
(4) Fails to operate the Business for a period of three (3) consecutive days without justifiable cause; or
(5) Diverts or collects any fees from Customers in violation of Section VI.D., above which provide that customer billings and collections are to be done by BUILDINGSTARS; or
(6) Fails to properly service Customers in accordance with BUILDINGSTARS' standards and within the spirit and intent of this Agreement. (By way of illustration and not limitation, a failure to properly service Customers will occur if at least three Customer complaints are made regarding the services rendered by the Business within any consecutive ninety-day period because of dissatisfaction with services provided by the Business).
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars has the option to terminate the Franchise Agreement if a franchisee fails to operate the business for three consecutive days without justifiable cause. This falls under the "good cause" for termination clause in the agreement. Buildingstars can exercise this option without prejudice to any other rights or remedies available to them under the agreement, at law, or in equity. However, the FDD stipulates that state law may permit Buildingstars to terminate earlier if the "good cause" constitutes a default which is not curable.
This means that a Buildingstars franchisee needs to ensure consistent operation of their business. Unexplained or unapproved closures of three consecutive days could lead to the termination of their franchise agreement. The franchisee would need to demonstrate "justifiable cause" for the closure to avoid potential termination.
It is important to note that the definition of "justifiable cause" is not provided in this section of the FDD. A prospective Buildingstars franchisee should seek clarification from Buildingstars on what constitutes justifiable cause to avoid any misunderstandings or potential disputes. This could include pre-approved vacation time, documented illness, or other unforeseen circumstances that prevent the franchisee from operating the business.