Under what conditions related to checks can Buildingstars terminate the franchise agreement immediately?
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' 2025 Franchise Disclosure Document, Buildingstars can terminate the franchise agreement immediately if the franchisee gives more than two no-account or insufficient funds checks within a twelve-month period. However, this is contingent on state law permitting such immediate termination.
This clause protects Buildingstars from financial instability or untrustworthy financial practices on the part of the franchisee. Issuing multiple bad checks suggests potential financial mismanagement or a lack of funds, which could negatively impact the franchise's operations and reputation.
It's important to note that the ability to immediately terminate the agreement based on bad checks depends on the specific state laws governing franchise agreements. A prospective Buildingstars franchisee should consult with a legal professional to understand their rights and obligations under the franchise agreement and applicable state laws.