Under what conditions can Buildingstars terminate the franchise immediately without an opportunity to cure?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Without Opportunity to Cure. 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) any other act or omission which permits termination without notice and/or an opportunity to cure under applicable state law.
Source: Item 23 — RECEIPT (FDD pages 43–217)
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 it is permitted by state law. These circumstances include if the franchisee or its owners are convicted of a felony or any other criminal misconduct that materially and adversely affects the franchise's operation, maintenance, 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 bankruptcy or insolvency of the franchisee. Additionally, Buildingstars can immediately terminate the agreement if the franchisee gives more than two no-account or insufficient funds checks within a twelve-month period.
Finally, Buildingstars can terminate the franchise immediately if there is any other act or omission that permits termination without notice and/or an opportunity to cure under applicable state law. This means that the specific grounds for immediate termination may vary depending on the state in which the franchise operates, so prospective franchisees should be aware of the laws in their particular state.