factual

For what reasons can Buildingstars terminate the agreement with only a 10-day opportunity to cure?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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.

Source: Item 23 — RECEIPT (FDD pages 43–217)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars can terminate the franchise agreement with only a 10-day opportunity to cure under specific circumstances. These circumstances include nonpayment of sums due to Buildingstars, its affiliates, or suppliers. Additionally, Buildingstars may terminate if the franchisee fails to open the business within the time periods specified in the agreement or fails to comply with the Conditions of Grant.

If any of these defaults occur, Buildingstars is required to provide written notice to the franchisee. However, Buildingstars is only obligated to grant the franchisee ten days to remedy the default, if permitted by applicable law. If the franchisee does not correct the deficiency within this 10-day period, Buildingstars has the right to terminate the Franchise Agreement, which will be effective no less than ninety days after the original notice.

It is important for a prospective Buildingstars franchisee to understand these conditions, as a failure to meet financial obligations, open the business on time, or adhere to the Conditions of Grant could lead to a swift termination of the agreement with a limited opportunity to rectify the situation. This is a stricter timeframe than the standard 30-day cure period for other breaches, so franchisees need to be particularly diligent in these areas.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.