How much notice must a Buildingstars franchisee give Buildingstars for a material default?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE may terminate this Agreement if BUILDINGSTARS shall materially default in performance of any terms and conditions in this Agreement, after giving BUILDINGSTARS written notice within thirty (30) days thereof, and if the default has not been corrected within sixty (60) days thereafter.
- C.
Consequences of Termination.
Upon termination or expiration of this Agreement, for any reason whatsoever, all of FRANCHISEE'S rights hereunder shall terminate.
FRANCHISEE shall immediately thereafter discontinue use of all Marks, signs, colors, structures, printed goods and forms of advertising indicative of BUILDINGSTARS' business and return any copyrighted materials which have been provided to FRANCHISEE by BUILDINGSTARS, and if BUILDINGSTARS requests, shall assign its telephone numbers to BUILDINGSTARS and execute any and all documents necessary to do so.
Further, FRANCHISEE shall pay all amounts due to BUILDINGSTARS, BUILDINGSTARS' Affiliates, and suppliers.
Further, FRANCHISEE agrees to return any and all materials which contain Confidential Information in whatever form, including but not limited to the Confidential Operation Manual, to BUILDINGSTARS immediately.
FRANCHISEE'S obligations regarding Trade Secrets and Confidential Information and Non-Solicitation and Non-Competition shall remain in full force and effect in accordance with their terms, notwithstanding such termination.
FRANCHISEE will immediately cease providing services to all Customers and forfeit all rights it has to the customer accounts. Upon request of BUILDINGSTARS, FRANCHISEE will assign to BUILDINGSTARS any or all of FRANCHISEE'S Customer contracts and BUILDINGSTARS will have the right to either service the accounts or assign the servicing of the accounts to others. At no such time
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must provide Buildingstars with written notice within thirty (30) days of any failure by Buildingstars to perform its obligations under the franchise agreement. If Buildingstars fails to correct the default within sixty (60) days after receiving this notice, the franchisee has grounds to terminate the agreement.
This means that a Buildingstars franchisee who believes Buildingstars is in material default must act promptly to document the issues and formally notify Buildingstars in writing. The franchisee must then allow Buildingstars a 60-day period to rectify the situation. If Buildingstars does not resolve the default within this timeframe, the franchisee can then proceed with terminating the franchise agreement.
It is important for prospective Buildingstars franchisees to understand this process, as failure to provide the initial 30-day notice could jeopardize their ability to terminate the agreement based on Buildingstars's default. Franchisees should consult with an attorney to ensure they properly document and communicate any defaults and follow the correct procedures for termination.