Can Buildingstars immediately terminate the franchise if the franchisee engages in fraudulent activity?

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars can terminate the franchise agreement immediately if the franchisee engages in fraudulent activity that materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise, provided that state law permits such immediate termination. This is without any opportunity for the franchisee to cure the issue.

This immediate termination clause is a significant risk for franchisees. Unlike some other defaults that allow a cure period, fraudulent activity can lead to instant termination, resulting in immediate loss of the franchise and its associated income. Franchisees must ensure they conduct their business with the utmost integrity to avoid any accusations of fraud that could trigger this clause.

In addition to fraudulent activity, Buildingstars can also immediately terminate the franchise agreement if the 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; abandonment of the franchise; bankruptcy or insolvency of the franchisee; the giving of more than two (2) no account or insufficient funds checks within a twelve-month period; or any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.