Under what condition can Buildingstars terminate the Franchise Agreement related to the initial training program?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Initial Training. BUILDINGSTARS will provide an initial training program for the operation of the Business using the System and Marks for one of the Principal Owners and one other person. 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 and its employees in attending this program. If FRANCHISEE'S Principal Owners do 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Buildingstars can terminate the Franchise Agreement if the franchisee's principal owner does not satisfactorily complete the initial training program. Buildingstars provides this initial training program for the operation of the business, utilizing the Buildingstars system and marks. This training is offered to one of the principal owners and one other person after the Franchise Agreement is executed but before the business opens.
The franchisee is responsible for covering all costs associated with attending the training program, including transportation, lodging, meals, and other related expenses for themselves and their employees. It is important to note that even if the principal owner satisfactorily completes the training program, Buildingstars does not guarantee the success of the business.
This condition highlights the importance of the initial training program for Buildingstars franchisees. Franchisees should ensure their principal owner is prepared to fully engage with and successfully complete the training, as failure to do so can result in the termination of their Franchise Agreement. Prospective franchisees should inquire about the specific requirements and expectations of the training program to mitigate this risk.