Does state law affect Buildingstars' ability to terminate the franchise agreement immediately without an opportunity to cure?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ds 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.
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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.
- B. Termination by FRANCHISEE.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, state law does impact Buildingstars' ability to terminate a franchise agreement immediately without providing an opportunity to cure. Specifically, Buildingstars is permitted to terminate the franchise immediately upon notice if state law allows it, given certain grounds for cancellation.
The grounds for immediate termination include: if the franchisee or its owners are convicted of a felony or any other criminal misconduct which materially and adversely affects the franchise; fraudulent activity that materially and adversely affects the franchise; abandonment of the franchise; bankruptcy or insolvency of the franchisee; the giving of more than two no account or insufficient funds checks within a twelve-month period; or any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Furthermore, the FDD states that if any valid applicable law or regulation limits Buildingstars' rights of rescission or termination or requires longer notice periods than set forth in the agreement, the agreement will be amended to conform to the minimum notice periods or restrictions required by such laws or regulations. This ensures that Buildingstars complies with state-specific regulations regarding franchise termination.
This means that a prospective Buildingstars franchisee needs to be aware of the specific franchise laws in their state, as these laws will dictate the circumstances under which Buildingstars can immediately terminate the franchise agreement. It also means that the standard terms of the franchise agreement may be modified by a State Law Addendum if required by a state regulator.