Under what conditions can Buildingstars terminate the franchise agreement immediately without an opportunity to cure?
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's 2025 Franchise Disclosure Document, Buildingstars can terminate the franchise agreement immediately without giving the franchisee an opportunity to cure under specific circumstances, assuming state law permits such immediate termination. These circumstances include if the franchisee or its owners are convicted of a felony or any other criminal misconduct that significantly harms the franchise's operation, reputation, or goodwill.
Immediate termination is also permitted in cases of fraudulent activity that materially and adversely affects the franchise, abandonment of the franchise, or the franchisee's bankruptcy or insolvency. Furthermore, Buildingstars can immediately terminate the agreement if the franchisee issues more than two no-account or insufficient funds checks within a twelve-month period.
Another cause for immediate termination is failing to meet the Minimum Revenue Requirement in any month. Finally, Buildingstars can terminate the agreement immediately for any other act or omission that allows for termination without notice or an opportunity to cure under applicable state law.
Prospective Buildingstars franchisees should be aware of these conditions, as they represent significant risks that could lead to the immediate loss of their franchise. It is important to understand state laws regarding termination rights and to ensure compliance with all terms of the franchise agreement to avoid these situations.