Under what circumstances can Buildingstars terminate the franchise agreement with only a 10-day opportunity to cure?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 10 Day Opportunity to Cure BUILDINGSTARS may also terminate this Agreement for nonpayment of sums due to BUILDINGSTARS or BUILDINGSTARS' Affiliates or suppliers; or failure of FRANCHISEE to open the Business in accordance with the time periods 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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars may terminate the franchise agreement with only ten days to cure under specific circumstances. These circumstances include nonpayment of sums due to Buildingstars, its affiliates, or suppliers, or if the franchisee fails to open the business within the time periods specified in the agreement.
Specifically, if a franchisee fails to pay the required amounts to Buildingstars or related entities, or does not launch their Buildingstars business as per the agreed schedule, Buildingstars is only obligated to provide a 10-day notice to remedy the situation. Should the franchisee not rectify the default within this 10-day window, Buildingstars can proceed to terminate the agreement after ninety days from the original default notice.
This is a shorter cure period than the standard 30-day cure period Buildingstars typically provides for other breaches of the franchise agreement. This accelerated termination timeframe underscores the importance of franchisees maintaining timely payments and adhering to the agreed-upon business launch schedule to avoid potential franchise termination.