What actions does the Buildingstars franchisee authorize Buildingstars to take regarding customer billing and payments?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
nt Services BUILDINGSTARS will provide FRANCHISEE with billing and collection services on its behalf. However, BUILDINGSTARS is not responsible if the Customer fails to pay nor is BUILDINGSTARS required to commence any further action other than as set forth herein if they do not pay. FRANCHISEE is responsible for any and all collection activities if a Customer is delinquent in payment.
- a. Authorization to BUILDINGSTARS. FRANCHISEE hereby authorizes BUILDINGSTARS to bill each Customer on a scheduled basis, accept payments from Customer accounts, collect accounts receivable, and maintain revenue records. BUILDINGSTARS will provide Customer imprinted invoices, envelopes and postage. In addition, BUILDINGSTARS will provide ongoing phone contact and reminder notices, both mailed and faxed to delinquent Customers on a monthly basis. Once a month BUILDINGSTARS will provide FRANCHISEE a Monthly Revenue Statement. FRANCHISEE hereby authorizes BUILDINGSTARS to collect cash and other forms of payment from accounts to which FRANCHISEE has rendered services or products, endorse FRANCHISEE'S name on and deposit checks, sign its name on liens, and take any other action necessary to carry out the terms of this Agreement.
FRANCHISEE further authorizes BUILDINGSTARS to deduct from payments BUILDINGSTARS collects from the Customers the fees described in Sections III and IV of this Agreement and any other amounts due to BUILDINGSTARS, any authorized insurance payments, and any out-of-pocket costs (including but not limited to attorney's fees and court costs) incurred by BUILDINGSTARS in enforcing payment of accounts by Customers, FRANCHISEE or FRANCHISEE'S guarantors.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, franchisees authorize Buildingstars to manage various aspects of customer billing and payments. Specifically, Buildingstars is authorized to bill customers on a scheduled basis, accept payments from customer accounts, collect accounts receivable, and maintain revenue records. Buildingstars will provide customer imprinted invoices, envelopes, and postage, as well as ongoing phone contact and reminder notices to delinquent customers on a monthly basis. Buildingstars will also provide the franchisee with a Monthly Revenue Statement.
Furthermore, Buildingstars is authorized to collect cash and other forms of payment from accounts where the franchisee has rendered services or products. This includes the ability to endorse the franchisee's name on checks, deposit checks, sign the franchisee's name on liens, and take any other action necessary to fulfill the terms of the franchise agreement.
Buildingstars is also authorized to deduct fees described in the agreement, insurance payments, and out-of-pocket costs, such as attorney's fees and court costs, incurred while enforcing payments from customers, franchisees, or their guarantors, from the payments Buildingstars collects from customers. Buildingstars will collect all payments received and disburse the amount due to the franchisee according to the procedures outlined in the Confidential Operations Manual. The franchisee is obligated to deliver all money collected from customers to Buildingstars immediately. However, Buildingstars is not responsible if the customer fails to pay, and the franchisee is responsible for all collection activities if a customer is delinquent in payment.