What is the required notice period Buildingstars must provide before terminating the Franchise Agreement for nonpayment or failure to open the business, after the cure period?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 10 Day Opportunity to Cure BUILDINGSTARS may also terminate this Agreement for nonpayment of sums due to BUILDINGSTARS or BUILDINGSTARS' Affiliates or suppliers; or failure of FRANCHISEE to open the Business in accordance with the time periods specified in this Agreement.
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 the deficiency is not corrected within said ten (10) day period, BUILDINGSTARS may terminate this Agreement after ninety (90) days from the original default notice.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, if Buildingstars terminates the Franchise Agreement due to nonpayment or failure to open the business, Buildingstars must provide a written notice of default to the franchisee. The franchisee then has ten days to correct the default.
If the franchisee fails to correct the default within the ten-day period, Buildingstars has the right to terminate the Franchise Agreement. The termination will be effective no less than ninety days after the original notice of default was issued.
In summary, after the ten-day cure period, Buildingstars must provide a notice period of ninety days before the termination becomes effective. This allows the franchisee additional time to potentially resolve the issue or prepare for the termination of the agreement.