Under what conditions can Buildingstars terminate the franchise agreement with only a 10-day cure period?
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 not cured within the applicable period, BUILDINGSTARS shall have the right to terminate this Franchise Agreement to be effective no less than ninety (90) days after the original 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 a 10-day opportunity to cure under specific circumstances. This expedited termination can occur if the franchisee fails to pay sums due to Buildingstars, its affiliates, or its suppliers. It also applies if the franchisee fails to open the business within the time periods specified in the franchise agreement.
In these instances, Buildingstars is required to provide written notice of default. However, if permitted by applicable law, Buildingstars only needs to grant the franchisee ten days to remedy the default. If the franchisee does not correct the deficiency within this ten-day period, Buildingstars can proceed to terminate the agreement, with the termination becoming effective no less than ninety days after the original default notice.
This shorter cure period presents a significant risk for franchisees. Failing to meet payment obligations or adhere to the opening timeline can quickly lead to termination. Prospective franchisees should ensure they have sufficient capital and a solid business plan to avoid these pitfalls. They should also consult with an attorney to understand their rights and obligations under the franchise agreement and applicable state laws.