What are the specific circumstances under which Buildingstars can terminate the franchise agreement immediately without an opportunity to cure?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Without Opportunity to Cure. Notwithstanding anything contained herein to the contrary, if state law permits, BUILDINGSTARS shall be permitted to terminate the franchise immediately upon notice when the basis or grounds for cancellation is: (a) FRANCHISEE or its owners are convicted of a felony or any other criminal misconduct which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (b) fraudulent activity which materially and adversely affects the operation, maintenance, reputation, or goodwill of the franchise; (c) abandonment of the franchise; (d) bankruptcy or insolvency of the FRANCHISEE; (e) the giving of more than two (2) no account or insufficient funds checks within a twelve-month period; or (f) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, there are specific conditions under which Buildingstars can terminate the franchise agreement immediately, without giving the franchisee an opportunity to correct the issue. These circumstances include if the franchisee or its owners are convicted of a felony or any other criminal misconduct that significantly harms the franchise's operation, reputation, or goodwill.
Buildingstars can also immediately terminate the agreement if the franchisee engages in fraudulent activity that materially and adversely affects the franchise. Other grounds for immediate termination are abandonment of the franchise, bankruptcy or insolvency of the franchisee, or giving more than two no-account or insufficient funds checks within a twelve-month period.
Additionally, Buildingstars can terminate the agreement immediately for any other act or omission that permits termination without notice and/or an opportunity to cure under applicable state law. However, the ability to terminate immediately is contingent on whether state law permits such action. Prospective franchisees should consult with a legal professional to understand their rights and obligations under the franchise agreement and applicable state laws.