For Buildingstars, how many consecutive days of business closure without justifiable cause constitutes good cause for termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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 or any guarantor of this Agreement:
- (4) Fails to operate the Business for a period of three (3) consecutive days without justifiable cause;
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, a franchisee's failure to operate the business for three consecutive days without justifiable cause constitutes grounds for termination of the franchise agreement. Buildingstars may choose to terminate the agreement for "good cause" if the franchisee fails to operate the business for this period. However, state laws could permit Buildingstars to terminate the agreement earlier if the "good cause" is not curable.
This means that if a Buildingstars franchisee closes their business for three consecutive days and does not have a valid reason, Buildingstars has the right to terminate the franchise agreement. The FDD does not define what constitutes a "justifiable cause," so it is important for a prospective franchisee to clarify this with Buildingstars.
Buildingstars will typically provide the franchisee with a notice of termination and an opportunity to cure the deficiency, but this may not be the case in all situations. The franchisee should seek legal counsel to fully understand the implications of this clause and what constitutes a justifiable cause for closure.