Under what circumstances can a Buildingstars franchisee terminate the 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 |
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, a franchisee can terminate the franchise agreement if Buildingstars breaches the agreement and does not cure or attempt to cure the breach after receiving notice from the franchisee. This is a fairly standard provision in franchise agreements, allowing the franchisee recourse if the franchisor fails to uphold their end of the contract.
It is important for a prospective Buildingstars franchisee to understand the specific definition of "breach" as defined in the franchise agreement, as well as the process for providing notice to Buildingstars and the timeframe Buildingstars has to cure the breach. Failure to follow the proper procedures could invalidate the franchisee's termination attempt.
This termination right provides some protection to the franchisee, ensuring that Buildingstars is held accountable for its obligations under the franchise agreement. However, franchisees should carefully consider the potential costs and legal complexities involved in pursuing a termination claim, and should seek legal advice before taking such action.