Under what condition can Buildingstars terminate the Franchise Agreement if the franchisee does not complete the initial training?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for the FRANCHISEE.
The initial training program is furnished after this Agreement is executed and prior to the opening of the Business and will be furnished at such time and place as BUILDINGSTARS may designate.
FRANCHISEE shall pay all transportation, lodging, meals and other expenses incurred by it in attending this program.
If FRANCHISEE does not satisfactorily complete the training program, BUILDINGSTARS shall have the right to terminate this Agreement.
Satisfactory completion of the training program is, however, no assurance of the success of the Business.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars has the right to terminate the Franchise Agreement if the franchisee does not satisfactorily complete the initial training program. This training program is provided after the Franchise Agreement is executed but before the business opens. The training will be furnished at a time and place designated by Buildingstars.
It is important to note that franchisees are responsible for covering their own transportation, lodging, meals, and other expenses while attending the training program. While satisfactory completion of the training program is required, Buildingstars states that it does not guarantee the success of the business.
This clause highlights the importance of the initial training provided by Buildingstars. Franchisees should be prepared to invest time and resources into the training program to meet Buildingstars' standards. Failure to do so could result in the termination of the Franchise Agreement, emphasizing the need for franchisees to take the training seriously and perform to the franchisor's expectations.