Can Buildingstars terminate the franchise immediately if the franchisee abandons the franchise?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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) failing to generate the Minimum Revenue Requirement in any month; or (g) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars can terminate the franchise agreement immediately if the franchisee abandons the franchise, provided that state law permits such immediate termination. In general, Buildingstars typically provides a 90-day written notice of termination, allowing the franchisee 30 days to correct any deficiencies. However, this does not apply in certain situations.
Buildingstars can terminate the agreement with only ten days' notice if the franchisee fails to pay amounts due to Buildingstars, its affiliates, or suppliers, or if the franchisee fails to open the business within the specified time frame.
Notwithstanding the above, Buildingstars can terminate the franchise immediately if permitted by state law, without providing an opportunity to cure, if the franchisee or its owners are convicted of a felony, engage in fraudulent activity, abandon the franchise, become bankrupt or insolvent, issue more than two insufficient funds checks within a year, fail to meet the Minimum Revenue Requirement in any month, or commit any other act that allows termination without notice under applicable state law. Therefore, a prospective franchisee should understand the conditions under which Buildingstars can immediately terminate the franchise agreement and be aware of the relevant state laws regarding franchise termination.