What are the initial franchise term lengths for a Buildingstars Technician's Franchise Agreement, On-Site Manager Franchise Agreement, and Corporate Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| 1 year for Technician's Franchise Agreement; 3 years for On-Site Manager | ||
| a. Term of the franchise | Section V | Franchise Agreement and 5 years for Corporate Franchise Agreement. |
| b. Renewal or extension | Section V | 3 renewals for 1 year each for Technician Franchise Agreement, however, if a new franchise agreement is not signed, the original franchise agreement continues on a month-to-month basis; 3 renewals for 3 years each for On-Site Manager Franchise Agreement and 3 renewals of 5 years each for Corporate Franchise Agreement - all subject to terms of Section V of the Franchise Agreement. |
| c. Requirement for franchisee to renew or extend | Section V | Give notice, sign the then current franchise agreement, and pay a renewal fee. The then current franchise agreement may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements. Corporate Program franchises must also have been in full compliance with the Minimum Revenue Requirements. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 29–31)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial term for a Technician's Franchise Agreement is 1 year, while the On-Site Manager Franchise Agreement has an initial term of 3 years. The Corporate Franchise Agreement has a longer initial term of 5 years. These terms define the period during which the franchisee can operate under the Buildingstars brand, subject to compliance with the franchise agreement.
Following the initial term, each agreement provides for renewal options. The Technician Franchise Agreement allows for 3 renewals of 1 year each. The On-Site Manager Franchise Agreement offers 3 renewals of 3 years each, and the Corporate Franchise Agreement provides 3 renewals of 5 years each. However, if a new Technician franchise agreement is not signed, the original agreement continues on a month-to-month basis.
To renew their franchise agreement, Buildingstars franchisees must provide notice, sign the then-current franchise agreement, and pay a renewal fee. It is important to note that the terms and conditions of the renewed agreement may differ significantly from the original, potentially including changes to fee requirements. Corporate Program franchises must also be in full compliance with the Minimum Revenue Requirements to be eligible for renewal. These renewal conditions are typical in franchising, allowing the franchisor to update agreements and ensure franchisees meet performance standards.