What is the renewal fee that a Buildingstars franchisee must pay to renew their franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
V. TERM
The term of this Agreement shall be for a period of three (3) years from the date of final execution, unless sooner terminated in accordance with this Agreement. If FRANCHISEE is in full compliance with the terms of this Agreement, FRANCHISEE shall have the right to renew for three (3) additional terms of three (3) years each, provided that FRANCHISEE is not in default under this Agreement at the time of each renewal, FRANCHISEE executes the most current franchise agreement being utilized by BUILDINGSTARS and FRANCHISEE pays BUILDINGSTARS a renewal fee of $1,000. Notwithstanding the foregoing, BUILDINGSTARS may, in its discretion, refuse to renew the Franchise if FRANCHISEE has been notified of defaults (even if subsequently cured) under the Franchise Agreement more than two (2) times during the initial term or more than three (3) times during any renewal term, even if FRANCHISEE is not in default at the time of such renewal. The then current franchise agreement may contain significantly different terms than this Agreement. On renewal, BUILDINGSTARS is under no obligation to provide FRANCHISEE with any new customer accounts. 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.
VI. OBLIGATIONS OF BUILDINGSTARS
A. Initial Training. BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for one of the Principal Owners and one other
[Item 22: CONTRACTS]
V. TERM
The term of this Agreement shall be for a period of five (5) years from the date of final execution, unless sooner terminated in accordance with this Agreement. If FRANCHISEE is in full compliance with the terms of this Agreement, FRANCHISEE shall have the right to renew for three (3) additional terms of five (5) years each, provided that FRANCHISEE is not in default under this Agreement at the time of each renewal, FRANCHISEE executes the most current franchise agreement being utilized by BUILDINGSTARS and FRANCHISEE pays BUILDINGSTARS a renewal fee of $2,000. Notwithstanding the foregoing, BUILDINGSTARS may, in its discretion, refuse to renew the Franchise if FRANCHISEE has been notified of defaults (even if subsequently cured) under the Franchise Agreement more than two (2) times during the initial term or more than three (3) times during any renewal term, even if FRANCHISEE is not in default at the time of such renewal, or if FRANCHISEE has not been in full compliance with the Minimum Revenue Requirement. The then current franchise agreement may contain significantly different terms than this Agreement. On renewal, BUILDINGSTARS is under no obligation to provide FRANCHISEE with any new customer accounts. 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.
VI. OBLIGATIONS OF BUILDINGSTARS
A. Initial Training. BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for one of the Principal Owners and one other person. The initial training program is furnished after this Agreement is executed and prior to the opening
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the renewal fee depends on the term length of the initial agreement. For an initial agreement with a three-year term, the renewal fee is $1,000 for each additional three-year term. If the initial agreement has a five-year term, the renewal fee is $2,000 for each subsequent five-year term.
To renew the Buildingstars franchise, the franchisee must be in full compliance with the existing agreement and not in default at the time of renewal. The franchisee is also required to execute the most current franchise agreement used by Buildingstars. The franchisor retains the right to refuse renewal if the franchisee has received default notices more than two times during the initial term, or more than three times during any renewal term, even if these defaults were subsequently resolved. Additionally, for agreements with a five-year term, Buildingstars may refuse renewal if the franchisee has not been in full compliance with the Minimum Revenue Requirement.
It is important to note that the terms of the renewed franchise agreement may differ significantly from the original agreement. Buildingstars is not obligated to provide the franchisee with new customer accounts upon renewal. The franchisee must provide Buildingstars with at least 120 days' written notice of their intent to renew before the end of the current term. If Buildingstars decides not to renew, they must notify the franchisee in writing at least 90 days before the agreement's expiration. If a new agreement isn't executed and Buildingstars doesn't provide notice of non-renewal, the agreement continues on a month-to-month basis, terminable by either party with 30 days' notice.