What are the requirements for a Buildingstars franchisee to renew their franchise agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| 1 year for Technician's Franchise Agreement; 3 years for On-Site Manager | ||
| a. Term of the franchise | Section V | Franchise Agreement and 5 years for Corporate Franchise Agreement. |
| b. Renewal or extension | Section V | 3 renewals for 1 year each for Technician Franchise Agreement, however, if a new franchise agreement is not signed, the original franchise agreement continues on a month-to-month basis; 3 renewals for 3 years each for On-Site Manager Franchise Agreement and 3 renewals of 5 years each for Corporate Franchise Agreement - all subject to terms of Section V of the Franchise Agreement. |
| c. Requirement for franchisee to renew or extend | Section V | Give notice, sign the then current franchise agreement, and pay a renewal fee. The then current franchise agreement may contain terms and conditions materially different from those in your previous franchise agreement, such as different fee requirements. Corporate Program franchises must also have been in full compliance with the Minimum Revenue Requirements. |
| d. Termination by franchisee | Section XI.B | If we breach agreement and do not cure or attempt to cure after notice |
| e. Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. Termination by franchisor with cause | Sections XI.A | If you don't satisfactorily complete training or generally if you breach agreement |
| g. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 29–31)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the requirements for a franchisee to renew their franchise agreement involve several key steps. To renew, a franchisee must provide notice of their intent to renew, sign the then-current franchise agreement, and pay a renewal fee. It is important to note that the terms and conditions in the new franchise agreement may differ significantly from the previous agreement, potentially including different fee requirements. For Corporate Program franchises, an additional requirement is that the franchisee must have been in full compliance with the Minimum Revenue Requirements.
For a Technician Franchise Agreement, there are 3 possible renewals for 1 year each. However, if a new franchise agreement is not signed, the original franchise agreement continues on a month-to-month basis. For an On-Site Manager Franchise Agreement, there are 3 renewals for 3 years each. For a Corporate Franchise Agreement there are 3 renewals of 5 years each. All renewals are subject to the terms outlined in Section V of the Franchise Agreement.
Prospective franchisees should be aware that the renewal terms are not guaranteed to be the same as the original agreement. Buildingstars could introduce new fees or modify operational requirements, which could impact the franchisee's profitability and business operations. Franchisees should carefully review the then-current franchise agreement before committing to a renewal to fully understand any changes and their implications. For Corporate Program franchises, maintaining compliance with Minimum Revenue Requirements is critical for eligibility to renew.