What is the initial term length of the Buildingstars Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
V. TERM
The term of this Agreement shall be for a period of five (5) years from the date of final execution, unless sooner terminated in accordance with this Agreement. If FRANCHISEE is in full compliance with the terms of this Agreement, FRANCHISEE shall have the right to renew for three (3) additional terms of five (5) years each, provided that FRANCHISEE is not in default under this Agreement at the time of each renewal, FRANCHISEE executes the most current franchise agreement being utilized by BUILDINGSTARS and FRANCHISEE pays BUILDINGSTARS a renewal fee of $2,000. Notwithstanding the foregoing, BUILDINGSTARS may, in its discretion, refuse to renew the Franchise if FRANCHISEE has been notified of defaults (even if subsequently cured) under the Franchise Agreement more than two (2) times during the initial term or more than three (3) times during any renewal term, even if FRANCHISEE is not in default at the time of such renewal, or if FRANCHISEE has not been in full compliance with the Minimum Revenue Requirement. The then current franchise agreement may contain significantly different terms than this Agreement. On renewal, BUILDINGSTARS is under no obligation to provide FRANCHISEE with any new customer accounts. FRANCHISEE agrees to give BUILDINGSTARS not less than one hundred twenty (120) days written notice of its desire to renew the franchise, prior to the end of the initial term or the renewal term. In the event that BUILDINGSTARS elects not to renew, BUILDINGSTARS shall give FRANCHISEE written notice within ninety (90) days prior to the expiration of this Agreement.
Notwithstanding anything herein to the contrary, in the event that a new franchise agreement is not executed by both parties at the expiration of this Agreement or any renewal term and BUILDINGSTARS has not given FRANCHISEE notice of its intent not to renew, this Agreement shall continue in accordance with its terms on a month-to-month basis with either party having the right to terminate on thirty (30) days prior written notice to the other party.
VI. OBLIGATIONS OF BUILDINGSTARS
A. Initial Training. BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for one of the Principal Owners and one other person. The initial training program is furnished after this Agreement is executed and prior to the opening
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the initial term length for the Franchise Agreement can be either three or five years, depending on the agreement.
Specifically, one version of the agreement states that the term is for a period of five years from the date of final execution, unless terminated sooner in accordance with the agreement. This agreement allows the franchisee the right to renew for three additional terms of five years each, provided they are in full compliance with the agreement, execute the most current franchise agreement, and pay a renewal fee of $2,000.
Alternatively, another version of the agreement specifies a shorter initial term of three years from the date of final execution, again unless terminated sooner. This version allows for three additional renewal terms of three years each, under similar conditions of compliance, execution of the current agreement, and payment of a renewal fee, but in this case, the renewal fee is $1,000.
Both agreements include a clause that if a new franchise agreement is not executed at the expiration of the initial or any renewal term, and Buildingstars has not given notice of non-renewal, the agreement continues on a month-to-month basis, terminable by either party with thirty days' written notice. Prospective franchisees should clarify which agreement they will be signing and understand the implications of the term length and renewal conditions.