How much written notice must a Buildingstars franchisee give to Buildingstars if they desire to renew their franchise?
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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, a franchisee must provide Buildingstars with at least 120 days of written notice before the end of their current franchise term if they wish to renew their franchise agreement. This applies to both the initial term and any subsequent renewal terms.
This advance notice is crucial for several reasons. It allows Buildingstars to assess the franchisee's compliance with the franchise agreement, ensuring they are not in default at the time of renewal. It also gives Buildingstars time to evaluate whether to offer a renewal, considering factors like the franchisee's history of defaults, even if those defaults were previously corrected. Buildingstars retains the discretion to refuse renewal if the franchisee has a history of multiple defaults.
Furthermore, the 120-day notice period provides Buildingstars with ample time to prepare the most current franchise agreement for the franchisee's review and execution. The FDD states that the terms of the renewed agreement may differ significantly from the original, so franchisees need sufficient time to carefully consider these changes. Buildingstars is not obligated to provide new customer accounts upon renewal, which could also impact the franchisee's decision.
If a new franchise agreement isn't executed by the expiration date and Buildingstars hasn't notified the franchisee of its intent not to renew, the agreement will continue on a month-to-month basis, with either party able to terminate with 30 days' written notice. This provides a safety net but lacks the long-term security of a renewed franchise term.