What is the minimum number of consecutive days that a Buildingstars franchisee can fail to operate the business before it constitutes grounds for termination?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
e an undue burden upon FRANCHISEE'S ability to earn a livelihood.
The terms of this Section X are assignable by BUILDINGSTARS and shall inure to the benefit of BUILDINGSTARS, as well as its successors and assigns. In the event of any assignment, sale, merger or change in ownership or structure of BUILDINGSTARS, the resulting entity shall step into the place of BUILDINGSTARS, without any additional consent of or notice to FRANCHISEE, as if the term BUILDINGSTARS were defined in this Agreement to include such entity
XI. DEFAULT AND TERMINATION
A. Termination by BUILDINGSTARS.
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- 30 Day Opportunity to Cure 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:
- (1) Does not perform any and all of the lawful terms, conditions, and obligations of this Agreement, or the Confidential Operations Manual; or
- (2) Commits any other act which constitutes good cause under applicable state law or court decisions; or
- (3) Engages in any illegal, fraudulent, unfair or deceptive business practice, which, in the opinion of BUILDINGSTARS, adversely affects the operation, maintenance, or goodwill of the franchise; or
- (4) Fails to operate the Business for a period of three (3) consecutive days without justifiable cause; or
- (5) Diverts or collects any fees from Customers in violation of Section VI.D, above whi
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee's failure to operate the business for a period of three consecutive days without justifiable cause can be grounds for termination of the franchise agreement. This falls under the category of "good cause" for termination, allowing Buildingstars to terminate the agreement, provided that state law permits such termination.
Buildingstars typically provides the franchisee with a 30-day opportunity to cure the default. However, the FDD indicates that state law could allow Buildingstars to terminate the agreement earlier if the "good cause" constitutes a default that is not curable. This means that while a franchisee might expect a 30-day window to rectify the situation, the actual time frame could be shorter depending on local regulations.
This clause highlights the importance of consistent business operations for Buildingstars franchisees. Prospective franchisees should be aware of this requirement and ensure they have contingency plans in place to avoid any interruption in service. Furthermore, it is crucial to understand the specific laws in their state regarding franchise termination and the rights and obligations of both the franchisor and franchisee in such situations.