Under the Buildingstars Technician Program Franchise Agreement, what topics are covered in Section XI?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
XI. DEFAULT AND TERMINATION
A. Termination by BUILDINGSTARS.
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- 30 Day Opportunity to Cure. BUILDINGSTARS may at its option, and without prejudice to any other rights or remedies provided for in this Agreement or at law or in equity, terminate this Agreement for "good cause". (Provided that state law permits BUILDINGSTARS has the right to terminate earlier if the "good cause" constitutes a default which is not curable.) Without limitation as to other situations, good cause for termination also exists if FRANCHISEE:
- (1) Does not perform any and all of the lawful terms, conditions, and obligations of this Agreement, or the Confidential Operations Manual; or
- (2) Commits any other act which constitutes good cause under applicable state law or court decisions; or
(3) Engages in any illegal, fraudulent, unfair or deceptive business practice, which adversely affects the operation, maintenance, or goodwill of the franchise; or
(4) Fails to operate the Business for a period of three (3) consecutive days without justifiable cause; or
(5) Diverts or collects any fees from Customers in violation of Section VI.D., above which provide that customer billings and collections are to be done by BUILDINGSTARS; or
(6) Fails to properly service Customers in accordance with BUILDINGSTARS' standards and within the spirit and intent of this Agreement. (By way of illustration and not limitation, a failure to properly service Customers will occur if at least three Customer complaints are made regarding the services rendered by the Business within any consecutive ninety-day period because of dissatisfaction with services provided by the Business).
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, Section XI of the Technician Program Franchise Agreement pertains to default and termination. Specifically, it outlines the conditions under which Buildingstars may terminate the agreement.
The agreement states that Buildingstars can terminate the agreement for "good cause," provided that it is permitted by state law. Good cause includes failure to comply with the terms of the agreement or the Confidential Operations Manual, engaging in illegal or deceptive business practices that harm the franchise's goodwill, failing to operate the business for three consecutive days without justification, diverting fees from customers (since Buildingstars handles billings and collections), or failing to properly service customers according to Buildingstars' standards. An example of improper service is three customer complaints within a 90-day period.
This section is important for prospective Buildingstars franchisees as it clearly defines the circumstances that could lead to the termination of their franchise agreement. Understanding these conditions can help franchisees avoid actions that could jeopardize their franchise and ensure they operate their business in compliance with Buildingstars' requirements.