What is the Account Sales Fee that Buildingstars charges for new customer accounts?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
s complaint is not adequately remedied, BUILDINGSTARS has the right, but not the obligation to remedy the complaint and charge FRANCHISEE a Non-Performance Fee of $25 per hour per person needed to resolve the complaint, plus any other actual out of pocket expenses incurred. BUILDINGSTARS will withhold the Non-Performance Fee from the amount of billings BUILDINGSTARS collects for the FRANCHISEE.
- D. Account Sales Fee. If FRANCHISEE requests new customer accounts from BUILDINGSTARS or if FRANCHISEE is willing to accept a new customer account from BUILDINGSTARS, FRANCHISEE must pay BUILDINGSTARS an Account Sales Fee of two hundred percent (200%) of the Monthly Contract Revenue which is generated from the new customer account. The Account Sales Fee is payable in full even if FRANCHISEE loses the new customer account for any reason, however, BUILDINGSTARS will replace the lost new customer account only under the terms and conditions set forth in Section VI.J.
The Account Sales Fee is payable in cash or in the following manner:
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- FRANCHISEE may request new customer accounts in increments of $1,000 of Monthly Contract Revenue. At such time as FRANCHISEE submits said request, FRANCHISEE shall pay BUILDINGSTARS $100 for every $1,000 Monthly Contract Revenue it requested. This will serve as the first monthly payment under the Promissory Note in order to finance the Account Sales Fee. The amount of the Promissory Note will be 200% of the Monthly Contract Revenue. The Promissory Note will be payable without interest in 20 equal monthly installments. For example, if FRANCHISEE requests new customer accounts which would generate $2,000 in Monthly Contract Revenue, it would pay $200 (1/20 of $2,000 x 200%) ("Monthly Payment") and sign a Promissory Note guaranteed by the Guarantors under this Agreement which will contain substantially the same terms and conditions as set forth in Exhibit II. The second monthly payment will be due after the first full month FRANCHISEE has provided service to said new customer account. BUILDINGSTARS may withhold the monthly Promissory Note payments from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec. VI.D. below. A default under the Promissory Note shall also be deemed a default under this Agreement.
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- BUILDINGSTARS may, but is not required to, offer FRANCHISEE new customer accounts. If FRANCHISEE decides to accept the new customer account, which decision is solely within the FRANCHISEE'S discretion, FRANCHISEE must either pay the Account Sales Fee in cash or execute a Promissory Note guaranteed by the Guarantors under this Agreement substantially in the form set forth in Exhibit II for the amount of the Account Sales Fee. The Promissory Note is payable without interest in twenty (20) monthly installments, with the first installment due after the first full month FRANCHISEE has provided service to said new customer account. BUILDINGSTARS may withhold the monthly Promissory Note payments from the amount of billings BUILDINGSTARS collects for the FRANCHISEE, as more fully described in Sec. VI.D. below. A default under the Promissory Note shall also be deemed a default under this Agreement.
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Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, franchisees must pay an Account Sales Fee for new customer accounts. If a Buildingstars franchisee requests or accepts a new customer account from Buildingstars, they must pay an Account Sales Fee of 400% of the Monthly Contract Revenue generated by that new account. This fee is payable in full, even if the franchisee loses the account for any reason. However, Buildingstars will replace the lost account under specific conditions outlined in Section VI.J of the agreement.
The Account Sales Fee can be paid in cash or financed through a Promissory Note. Franchisees can request new customer accounts in increments of $1,000 of Monthly Contract Revenue. When a franchisee requests an account, they pay $200 for every $1,000 of Monthly Contract Revenue requested, which serves as the first monthly payment under the Promissory Note. The Promissory Note covers 400% of the Monthly Contract Revenue and is payable in 20 equal monthly installments without interest.
Buildingstars may also offer new customer accounts to franchisees. If a franchisee accepts such an account, they must either pay the Account Sales Fee in cash or execute a Promissory Note. This note is guaranteed and payable without interest in eighteen monthly installments, with the first payment due after the first full month of service. Buildingstars can withhold these monthly payments from the franchisee's billings. A default on the Promissory Note is considered a default under the Franchise Agreement.
Notably, if a Buildingstars franchisee independently secures a new customer account and the proposal is accepted, they are not required to pay an Account Sales Fee, unless Buildingstars was already in contact with that customer. This provides an incentive for franchisees to proactively find their own clients. Additionally, Buildingstars offers a 30-day trial period for all new customer accounts, during which franchisees can cancel the account under certain conditions and receive a credit for the Account Sales Fee paid.