How much prior written notice of termination will Buildingstars give to the franchisee?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to applicable law and except as otherwise provided in this Agreement, BUILDINGSTARS will give the FRANCHISEE at least ninety (90) days prior written notice of termination, [unless a longer period of time is required or shorter period of time is permitted by applicable state law]. The notice shall state the reason(s) for termination and shall provide that the FRANCHISEE has thirty (30) days from the date of said notice to correct any claimed deficiency. If the deficiency is corrected within thirty (30) days, the notice shall be void. If the deficiency is not corrected within said thirty (30) day period, BUILDINGSTARS may terminate this Agreement after ninety (90) days from the date the original written notice of default was given to FRANCHISEE.
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- 10 Day Opportunity to Cure. BUILDINGSTARS may also terminate this Agreement for nonpayment of sums due to BUILDINGSTARS or BUILDINGSTARS' Affiliates or suppliers; failure of FRANCHISEE to open the Business in accordance with the time periods specified in this Agreement; failure of FRANCHISEE to comply with the Conditions of Grant as set forth in paragraph II.C. If termination is based on the foregoing, the FRANCHISEE shall be entitled to written notice of default, but BUILDINGSTARS shall [if permitted by applicable law] only be required to grant FRANCHISEE ten (10) days to remedy such default. If not cured within the applicable period, BUILDINGSTARS shall have the right to terminate this Franchise Agreement to be effective no less than ninety (90) days after the original notice.
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- Without Opportunity to Cure. Notwithstanding anything contained herein to the contrary, if state law permits, BUILDINGSTARS shall be permitted to terminate the franchise immediately upon notice when the basis or grounds for cancellation is: (a) FRANCHISEE or its owners are convicted of a felony or any other criminal misconduct which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the giving of more than two (2) no account or insufficient funds checks within a twelve-month period; or (f) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars will typically provide a franchisee with at least ninety (90) days prior written notice of termination. This is subject to applicable law, which may require a longer or permit a shorter period. The notice must state the reasons for termination and give the franchisee thirty (30) days to correct any claimed deficiency. If the franchisee fixes the issue within that 30-day window, the termination notice becomes void. However, if the franchisee fails to correct the deficiency, Buildingstars can proceed with the termination after the initial ninety (90) days from the original notice.
There are exceptions to the 90-day notice. Buildingstars may terminate the agreement if the franchisee fails to pay sums due, fails to open the business as scheduled, or fails to comply with the Conditions of Grant. In these cases, Buildingstars only needs to provide ten (10) days to remedy the default, and termination can be effective no less than ninety (90) days after the original notice if the issues are not resolved.
In certain situations, Buildingstars can terminate the franchise immediately upon notice if state law permits. These situations include: a felony conviction or criminal misconduct by the franchisee, fraudulent activity, abandonment of the franchise, bankruptcy or insolvency of the franchisee, giving more than two insufficient funds checks within a year, or any other act that allows termination without notice under state law. Prospective franchisees should be aware of these conditions, as they significantly reduce the time to react to a termination notice or eliminate the cure period altogether.