What renewal fee must a Buildingstars franchisee pay to Buildingstars for each renewal term?
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 initial term length of the agreement. If the initial term is three years, the renewal fee is $1,000. If the initial term is five years, the renewal fee is $2,000.
A Buildingstars franchisee must be in full compliance with the terms of the agreement to be eligible for renewal. This includes not being in default at the time of renewal and executing the most current franchise agreement. Buildingstars retains the discretion to deny 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 the defaults were subsequently resolved and the franchisee is not in default at the time of renewal.
Buildingstars is not obligated to provide the franchisee with new customer accounts upon renewal, and the terms of the renewed franchise agreement may differ significantly from the original agreement. The franchisee must provide Buildingstars with at least 120 days' written notice of their intent to renew before the end of the current term. Buildingstars must then notify the franchisee of their decision regarding renewal within 90 days before the agreement's expiration.