How many additional five-year terms can a Buildingstars franchisee renew for, assuming they meet all requirements?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
elopment Fee. If during the term of this Agreement and within one year after termination, expiration or transfer of this Agreement, FRANCHISEE or any employee or affiliate of FRANCHISEE shall perform for any Customer services similar to those to be performed under this Agreement but performed outside of this Agreement, FRANCHISEE shall pay to BUILDINGSTARS a fee equal to 3 times the monthly amount agreed to be paid to FRANCHISEE, its employee or affiliate of FRANCHISEE, for such services.
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 significan
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee can renew their agreement for three additional five-year terms, provided they meet certain requirements. The initial franchise agreement with Buildingstars is for a period of five years.
To be eligible for renewal, the franchisee must be in full compliance with the terms of the franchise agreement at the time of each renewal. This means the franchisee must not be in default of the agreement. Additionally, the franchisee is required to execute the most current franchise agreement that Buildingstars is using at the time of renewal and pay a renewal fee of $2,000.
However, Buildingstars retains the discretion to refuse renewal even if the franchisee is not in default at the time of renewal. This can occur if the franchisee has received notifications of defaults (even if they were subsequently cured) more than two times during the initial term or more than three times during any renewal term, or if the franchisee has not been in full compliance with the Minimum Revenue Requirement. Franchisees must provide Buildingstars with written notice of their intent to renew at least 120 days before the end of the current term. Buildingstars must then notify the franchisee of their decision regarding renewal 90 days before the agreement's expiration.