How much prior written notice of termination will Buildingstars give to the franchisee for most defaults?
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 ninety (90) days after 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; or failure of FRANCHISEE to open the Business in accordance with the time periods specified in this Agreement.
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.
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) failing to generate the Minimum Revenue Requirement in any month; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, for most defaults, Buildingstars will provide the franchisee with at least ninety (90) days prior written notice of termination. This notice will detail the reasons for the termination and allow the franchisee thirty (30) days to correct the deficiency. If the franchisee fixes the issue within this 30-day period, the termination notice becomes void. However, if the franchisee fails to correct the deficiency within the given timeframe, Buildingstars can proceed with terminating the agreement ninety (90) days after the original default notice.
There are exceptions to the 90-day notice period. Buildingstars may terminate the agreement with only ten (10) days' notice if the termination is due to nonpayment of sums owed to Buildingstars or its affiliates, or if the franchisee fails to open the business within the specified time.
Furthermore, Buildingstars can terminate the franchise immediately upon notice, without any opportunity to cure, under certain circumstances, provided state law permits it. These circumstances include a felony conviction or criminal misconduct by the franchisee, fraudulent activity, abandonment of the franchise, bankruptcy or insolvency, giving more than two insufficient funds checks within a year, failing to meet the Minimum Revenue Requirement in any month, or any other act that allows termination without notice under applicable state law.
Prospective franchisees should be aware of these varying notice periods and the specific conditions that trigger them, as they significantly impact the franchisee's ability to rectify defaults and maintain their franchise agreement with Buildingstars.