How much written notice must a Buildingstars franchisee give Buildingstars of their desire to renew the franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE agrees to give BUILDINGSTARS not less than one hundred twenty (120) days written notice of its desire to renew the franchise, prior to the end of the initial term or the renewal term. In the event that BUILDINGSTARS elects not to renew, BUILDINGSTARS shall give FRANCHISEE written notice within ninety (90) days prior to the expiration of this Agreement.
Notwithstanding anything herein to the contrary, in the event that a new franchise agreement is not executed by both parties at the expiration of this Agreement or any renewal term and BUILDINGSTARS has not given FRANCHISEE notice of its intent not to renew, this Agreement shall continue in accordance with its terms on a month-to-month basis with either party having the right to terminate on thirty (30) days prior written notice to the other party.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their desire to renew the franchise agreement not less than one hundred twenty (120) days before the end of the current term. This applies to both the initial term and any subsequent renewal terms. This advance notice allows Buildingstars to plan for the future of the franchise and manage the transition effectively, whether it involves renewal or finding a new franchisee.
Buildingstars also has obligations regarding renewal. If Buildingstars elects not to renew the franchise agreement, they must provide the franchisee with written notice within ninety (90) days before the expiration of the agreement. This reciprocal notification period ensures that both parties have sufficient time to prepare for the end of the franchise relationship.
If a new franchise agreement is not executed by both parties upon expiration of the current term, and Buildingstars has not provided notice of non-renewal, the agreement will continue on a month-to-month basis. During this month-to-month extension, either party can terminate the agreement with thirty (30) days prior written notice to the other. This provision provides flexibility in case renewal negotiations are ongoing or if either party needs additional time to decide on the future of the franchise.
It is important to note that the renewal terms in the new franchise agreement may differ significantly from the original agreement. Buildingstars is also under no obligation to provide the franchisee with new customer accounts upon renewal. A prospective franchisee should carefully consider these factors and discuss them with Buildingstars before deciding to renew their franchise agreement.